HyperFund Ponzi Scheme

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HyperFund

Hyperfund is a blockchain company with no products or services, however investors may participate by paying money, which will supposedly generate a passive return. They also can get paid even more by recruiting others to join. In the end, however, the site disappeared, key owners are hiding away, and regulators seem upset. Hyperfund has now relaunched as Hyperverse, which has a similar lack of real product or service.

This is a global/international case not involving a specific country.

About HyperFund

"HYPERFUND - THE STRONGEST ROCKET IN BLOCKCHAIN FINANCE."

"HyperFund has constructed a DeFi ecosystem that will provide a completely decentralized financial infrastructure for all digital currency users. HyperFund will devote itself to developing quality blockchain projects, lead the strategic direction of Fintech, and aims to make more contributions to the blockchain industry."

"HyperTech Group has launched the HyperFund – Ogilvy Plan to build a DeFi (Decentralized Finance) ecosystem. The aim is to provide a holistic decentralized financial infrastructure. Ryan Xu, also known as the Martian, is the Chief Consultant of HyperTech Group, and will be heavily involved in the project."

"HyperFund has no retailable products or services, with affiliates only able to market HyperFund affiliate membership itself." "HyperCapital collapsed in mid 2020, prompting HyperTech to launch HyperFund."

"As per the company website it is led by Ryan Xu, however, with the Multi-Level Marketing (MLM) model Hyper Fund has been luring investors with higher returns and such offerings, a common practice under Ponzi Schemes, that got the authorities alerted in the first place."

"Attached to HyperFund are a bunch of HyperX branded smoke and mirrors companies: HyperPay, HyperFin, HyperBC, HPX, HyperMining, HyperTalk, HyperNews, HyperMall, HyperShow." "The HyperX companies are smoke and mirrors to put on HyperFund marketing slides. Outside of HyperPay, HyperTech’s internal exchange, the HyperX companies either don’t exist or aren’t being used by anyone."

"As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment. This will starve HyperFund of ROI revenue, eventually leaving them unable to pay HyperPay withdrawal requests."

"HyperFund is a 300% ROI Ponzi scheme combined with pyramid recruitment." "Affiliates sign up and invest USDT. They then receive a return and commissions in HU points, capped at 300%."

"HyperFund’s commissions are tied to affiliate investor recruitment, slapping pyramid fraud on top of Ponzi investment fraud."

"Notably, HyperFund’s compensation plan is a 1:1 clone of HyperCapital’s. The only difference is instead of paying HyperCash, HU Ponzi points have been created."

"Looks like they are creating tons of shit tokens and then requiring you to reinvest part of your money into their shit token. so all the tokens in the ecosystem are created by them. This means that their shit tokens look good to outside investors who see their prices going up, as you have no choice but to reinvest in them. That returns the profits which they are giving out to you to encourage you to invest more and bring friends in."

"Over the last few months India, the UK, New Zealand, Guernsey, Germany and Bermuda, have all taken regulatory action against HyperFund." "[W]ith regulators in several jurisdictions issuing securities fraud warnings, HyperFund has no doubt found it more difficult to feign association with regulators and auditors."

"Based on a marketing video from around April, showing Xu in Dubai with top HyperFund promoters Kalpesh Patel and Rodney Burton, we assumed Xu had relocated there."

“Steven Reece Lewis” introduces himself as HyperTech’s “new executive officer”. "Lewis’ Boris CEO cover story is that he “joined HyperTech Group in the beginning of 2021”." "Nobody in or outside of HyperTech and HyperFund has ever seen Lewis until now. Naturally Lewis doesn’t exist outside of this one HyperTech marketing video either."

"In his introduction video, Lewis suggests Xu disappeared due to crypto regulations in China: It is unfortunate with the China crypto ban, Chinese leaders in our management team have to step down a little bit."

"Xu disappearance and Lewis’ appointment as Boris CEO, HyperFund MOF withdrawals have been disabled." "I noted this in the comments of BehindMLM’s HyperFund review on November 22nd."

"Formerly HyperFund. They've just name changed." "As HyperFund transitions into its next Hyperverse reboot, affiliate investors have been instructed to delete evidence of the previous Ponzi scheme." "All websites, training, videos, funnels, email campaigns, chat groups, etc. ALL must be deleted completely." "HyperFund’s Hyperverse reboot comes during the 2021 holiday shopping season. This is typically when Ponzi schemes experience a cash crunch, as investors withdraw funds to cover end of year expenses." "They are actively deleting everything they can right now. Their Whitepaper has gone, so has their Github if they ever had one."

"As for Hyperverse’s launch, the company’s website went live approximately 24 hours ago." "Where reality ends and imagination begins. Humans have mastered interstellar travel in the year 2078 AD. After the first human settlement, “HyperVerse” was built by the first group of human voyagers on the Proxima Centauri star system, mankind officially entered the age of interstellar migration."

"The HyperVerse is a virtual metaverse comprising of millions of planets. In the HyperVerse, players, also known as voyagers, can connect with friends, experience different cultures and lifestyles, create tokenized items, start businesses, and explore the universe. HyperVerse provides a fair chance to every resident in the galaxy thanks to VerseDAO."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - HyperFund Ponzi Scheme

Date	Event	Description
November 22nd, 2021	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Technical Details

This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

General Prevention Policies

Experienced cryptocurrency users can typically tell what's fraudulent, however this takes practice, so it's always best for new participants to err on the side of caution, and avoid investing in most services.

To prevent such ponzi schemes, our framework provides that 2 industry reviews should be conducted of each proposed new service, by knowledgeable organizations. Regular reviews should also be conducted to ensure that all customer assets are fully backed, which prevents ponzi schemes since the key component is that funds are no longer backed.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.