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The HyperVerse cryptocurrency scheme, which initially targeted investors in developing countries across Asia, Africa, and the Pacific, faced an eventual collapse, leaving numerous individuals stranded without access to their funds.
The impact of this collapse was particularly severe in Nepal, where some investors who had taken out bank loans to participate in HyperVerse found themselves unable to withdraw their money, leading to distressing outcomes, including reported cases of self-harm.
HyperVerse's Global Influence and Misleading Promotions
A UK-based promoter of HyperVerse, during a 2022 tour of five African countries, claimed on a Ghanaian radio station that millions worldwide were benefiting from blockchain, even if they didn't fully comprehend its workings.
According to The Guardian, HyperVerse, linked to the earlier HyperFund scheme, was initiated by Australian blockchain entrepreneurs Sam Lee and Ryan Xu, both associated with the collapsed Australian company BlockChain Global.
Guardian Australia's investigation uncovered extensive losses incurred by individuals involved in these schemes, which managed to evade regulatory warnings in Australia. Despite warnings from overseas regulators terming HyperVerse a possible "scam" and a "suspected pyramid scheme," it continued to lure investors globally.
Regulatory Warnings and Unfulfilled Promises
The HyperVerse scheme's aggressive expansion strategy, rewarding existing members for recruiting new participants, led to its infiltration into untapped markets, particularly in developing countries.
In January 2022, the Central Bank of Nepal issued a public warning, cautioning against engaging in cryptocurrency products like HyperFund due to the absence of legal recognition for virtual currency in the country. The risks included potential deception of the public and illegal capital flight.
According to The Daily Hodl, during a Zoom meeting between Nepali Hyper members and Sam Lee in February 2023, grievances surfaced as individuals expressed anger over their inability to withdraw funds from the platform. Emotional testimonies included members feeling "sad and grumpy," managing demands from recruits unable to access their funds, and shedding light on the human toll of the HyperVerse collapse.
The HyperVerse cryptocurrency saga highlights the urgent need for enhanced regulatory measures to safeguard investors, especially in regions where these schemes tend to exploit vulnerabilities and cause severe financial and emotional distress.
Photo: Arjun Sharma / Unsplash
