Regulators Probe Failed Crypto Company with $58 Million Debt: Report on 2021 Collapse
Australian securities regulators are actively investigating Blockchain Global in connection with its directors, Sam Lee and Ryan Xu, following a report linking them to the previous crypto scheme Hyperverse.
The Australian Securities and Investment Commission (ASIC) had initially looked into possible violations of Australia’s Corporations Act in 2021 after Blockchain Global’s collapse but took no action. Now, prompted by The Guardian Australia’s findings on substantial losses in the HyperVerse investment scheme, ASIC is reevaluating Blockchain Global’s liquidation report. The HyperVerse scheme, suspected to be a pyramid scheme. Faced minimal regulatory scrutiny in Australia despite being flagged overseas. The U.S. Internal Revenue Service (IRS) claims that HyperVerse incurred losses of around $1.3 billion in 2022. Emphasizing concerns about the legitimacy of the company’s Bitcoin mining operations.
An ASIC investigation into Blockchain Global’s collapse also suggests a potential connection to HCash, a cryptocurrency associated with the Hyper investment schemes. Ryan Xu’s whereabouts are unknown, and Sam Lee has not responded to the report.
Clever Robot News Desk 24th January 2024
Related Article
