SEC settles with ‘Bitcoin Beautee’ over $1.7B HyperFund scheme

The SEC and US Attorney’s Office of Maryland announced charges against Sam Lee and Brenda Chunga, aka “Bitcoin Beautee”

article-image

Mirza Kadic/Shutterstock modified by Blockworks

share

The Securities and Exchange Commission announced charges against two of the leaders involved in HyperFund, an alleged crypto pyramid scheme that raised over $1.7 billion.

Both Sam Lee and Brenda Chunga were charged for their involvement. Chunga, aka Bitcoin Beautee, settled with the SEC over the fraud and unregistered offering charges. 

The regulatory agency states that the two “promoted HyperFund ‘membership’ packages, which they claimed guaranteed investors high returns, including from HyperFund’s supposed crypto asset mining operations and associations with a Fortune 500 company.”

Read more: Gensler’s SEC brought 46 crypto-related enforcements in 2023

“As alleged in our complaint, Lee and Chunga attracted investors with the allure of profits from crypto asset mining, but the only thing that HyperFund mined was its investors’ pockets,” said Gurbir Grewal, director of the SEC’s Division of Enforcement. 

As part of Chunga’s settlement, she is “permanently enjoined from future violations of the charged provisions and certain other activity, and to pay disgorgement and civil penalties in amounts to be determined by the court at a future date. The settlement is subject to court approval.”

Lee, according to the SEC’s press release, faces litigation. 

The two were charged with “violating the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctive relief, conduct-based injunctions preventing the defendants from participating in multi-level marketing or crypto asset offerings, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.”

The US Attorney’s Office of Maryland additionally announced criminal charges against both Lee and Chunga. Chunga pleaded guilty to conspiracy to commit wire fraud and securities fraud.

Read more: ‘Bitcoin Yoda’ faces 75 years for operating a crypto Ponzi scheme

According to court documents, Lee is a citizen of Australia and a resident of the United Arab Emirates, while Chunga resides in Maryland. 

Lee has also been linked to another alleged crypto scheme reported initially by the Guardian. He reportedly targeted investors across Asia, Africa and the Pacific in what was similarly dubbed “HyperVerse.”


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

NYSE owner’s investment values the prediction market at $8–9 billion, signaling Wall Street’s entry into event-based trading

by Blockworks /
article-image

Pineapple begins deploying its $100 million Injective Digital Asset Treasury, staking INJ to earn yield and fund onchain mortgage ambitions

by Blockworks /
article-image

Staking levels in the ether funds will depend on protocol unstaking queue times and anticipated redemption activity, firm says

article-image

ETF inflows, miner strength, and tightening supply drive Bitcoin past its prior peak amid renewed demand for scarce assets

by Blockworks /
article-image

The Guidestar team, led by Alex Nezlobin, will join Uniswap Labs to enhance automated market maker design and smart order routing

by Blockworks /