The HyperVerse cryptocurrency scheme, primarily targeting investors in developing nations across Asia, Africa, and the Pacific, crumbled, leaving many unable to access their funds.
In Nepal, individuals who took bank loans to invest in HyperVerse reported feeling suicidal and engaging in self-harm when unable to withdraw funds. In 2022, a UK-based HyperVerse promoter, toured five African countries, touted blockchain benefits to millions globally, even if they were not fully understood. Sam Lee and Ryan Xu, the founders of the defunct company BlockChain Global, are Australian blockchain entrepreneurs who started HyperVerse, which is associated with the earlier HyperFund.
The Guardian reported that its investigation exposed substantial losses, despite regulatory warnings abroad tagging HyperVerse a "scam" and a "suspected pyramid scheme." The HyperVerse scheme's global expansion, incentivizing members to recruit new participants, reached untapped markets, including developing nations.
(Photo : NHAC NGUYEN/AFP via Getty Images)
This photo illustration shows a Vietnamese cryptocurrency investor looking at the latest Bitcoin values on a smartphone in Hanoi on April 12, 2018.
The Central Bank of Nepal issued a public alert in January 2022, advising people to avoid investing in cryptocurrency products that promise "high returns in a short period." These online scams caused significant losses, underscoring the necessity for heightened regulatory oversight. A UK-based Nepali man disclosed that some of his countrymen who had taken out bank loans to acquire HyperVerse packages became suicidal after they fell victim for the online scam.
Bitcoin Rodney Facing US Charges
Recently, US authorities slapped charges on Rodney Burton, known as "Bitcoin Rodney," for allegedly orchestrating a fraudulent investment scheme that duped investors of over $7 million. The charges, filed by the US Internal Revenue Service (IRS) on January 5, accuse Burton of promoting the HyperVerse crypto investment scheme.
The unincorporated organization, also known as Hyperfund, HyperCapital, and HyperNation, claimed investors would receive daily passive rewards of 0.5% to 1%, doubling or tripling their initial investment. Burton allegedly received $7,851,711 from 562 wire transfers or cashier's checks. Numerous people suffered significant financial losses as a result of the HyperVerse scheme, per CoinDesk.
Burton, who was apprehended in Florida, is now facing charges in Maryland, marking a crackdown on fraudulent crypto activities.
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Public Warned on AI-Powered Cyberattack Surge
In another cybersecurity development, authorities advise the public to be vigilant online as cybercriminals are increasingly turning to AI for sophisticated attacks, including the creation of deepfakes, YouTube channel hijacking, and "Double Your Crypto" scams.
According to Techopedia, Bitdefender's recent Steam-Jacking 2.0 reports high-profile brands and figures such as XRP, MicroStrategy, SpaceX, Binance, Elon Musk, Michael Saylor, and Changpeng Zhao ("CZ") as among the top impersonated entities. Bitdefender's Alina Bizga highlights collaborative efforts among threat actors specializing in different aspects of the scam, which involves "stream-jacking" prominent YouTube accounts, targeting global content creators with large subscriber bases. Cybercriminals use malware to access user tokens, swiftly impersonating entities and redirecting users to crypto scam sites.
Perpetrators swiftly carry out these maneuvers, avoiding detection. Moreover, the report stresses the importance of user vigilance, advising the adoption of strong security measures, heightened awareness during live streams, and immediate reporting of scams using platform features.
Online users are also cautioned that reputable entities would never legitimately promise to double cryptocurrency. Essential defense against advancing cyber threats involves implementing security measures like multi-factor authentication and robust passwords. The report underscores the significance of reporting any dubious activities through platform features such as "Block and Report."
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