Australian securities regulators are investigating Blockchain Global after a report linked two of its directors to previous crypto schemes.
The Australian Securities and Investment Commission (ASIC) is investigating Blockchain Global directors Sam Lee and Ryan Xu after a newspaper investigation linked the two to another crypto scheme called Hyperverse, according to a report.
Asic began investigating the pair over possible breaches of Australia’s Corporations Act in 2021 following the collapse of Blockchain Global. After the initial investigation, Asic chose not to take any action.
Now, after a Guardian Australia story linked the directors to Hyperverse, ASIC is investigating Blockchain Global’s liquidation report.
Says an ASIC spokesperson:
“ASIC confirms that it is reviewing the trustee’s reports in this regard [Blockchain Global].”
A report from The Guardian Australia has revealed significant losses in the HyperVerse investment program. Despite being labeled overseas as a possible scam and suspected pyramid scheme, the scheme managed to evade regulatory scrutiny in Australia.
The US Internal Revenue Service (IRS) has alleged that early investors were paid with money from later investors, and that the company’s alleged Bitcoin (BTC) mining operations did not actually exist. Estimated losses for HyperVerse in 2022 are approximately $1.3 billion. Furthermore, an investigation by ASIC into the collapse of Blockchain Global has revealed a possible link to HCash, a cryptocurrency linked to the Hyper investment plans.
According to the report,
“Rewards collected through the previous Hyper schemes were converted to HCash before they could be converted to other cryptocurrencies.”
Although Ryan Xu’s whereabouts are currently unknown, Lee has not commented on the report.
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