Key Takeaways
- • A purported chief executive officer of the collapsed HyperVerse crypto fund, Steven Reece Lewis, does not appear to exist; promotional materials claiming he held degrees from the University of Leeds and University of Cambridge cannot be verified by either institution.
- • HyperVerse, promoted by Australian entrepreneurs Sam Lee and Ryan Xu, attracted thousands of investors who lost approximately $1.3 billion, with the scheme flagged by overseas regulators as a possible "scam" and "suspected pyramid scheme."
- • The two founders are previously associated with Blockchain Global, a failed bitcoin company that owes creditors $58 million; its liquidator has referred both Lee and Xu to the Australian Securities and Investments Commission (ASIC) for alleged breaches of the Corporations Act.
- • Celebrity endorsements, including video messages from Apple co-founder Steve Wozniak and actor Chuck Norris released in January 2022, were used to legitimize HyperVerse at its online launch event in December 2021.
- • ASIC has stated it does not intend to take enforcement action at this time, despite HyperVerse being flagged by international regulators; Lee denies the scheme was a scam and disputes being a founder.
Summary
Guardian Australia's investigation revealed that Steven Reece Lewis, presented as the chief executive officer of the collapsed HyperVerse cryptocurrency fund, cannot be verified to exist. When introduced at an online global launch event in December 2021, Reece Lewis was promoted with credentials claiming graduation from the University of Leeds and a master's degree from the University of Cambridge. However, neither university maintains records of this individual, nor do organizations cited in promotional materials—including Goldman Sachs and Adobe—have any employment history associated with the name.
The HyperVerse scheme, linked to a predecessor called HyperFund, attracted thousands of investors and accumulated approximately $1.3 billion in customer losses. The fund was promoted by Sam Lee and Ryan Xu, Australian entrepreneurs who previously founded Blockchain Global, a bitcoin company that collapsed owing creditors $58 million. The liquidator of Blockchain Global has referred both Lee and Xu to ASIC for alleged breaches of the Corporations Act. Lee has since denied that HyperVerse was a scam and disputed his role as founder; Xu could not be reached for comment.
The promotional strategy employed celebrity endorsements to build credibility with potential investors. Video messages of support from high-profile figures—including Apple co-founder Steve Wozniak and actor Chuck Norris—were released on Twitter in January 2022, creating an appearance of institutional legitimacy. Despite being flagged by international regulators as a potential "scam" and "suspected pyramid scheme," HyperVerse appears to have operated without regulatory intervention in Australia. ASIC has indicated it does not intend to pursue enforcement action at this time, leaving significant questions about regulatory gaps in Australia's oversight of cryptocurrency investment schemes.
The HyperVerse scheme, linked to a predecessor called HyperFund, attracted thousands of investors and accumulated approximately $1.3 billion in customer losses. The fund was promoted by Sam Lee and Ryan Xu, Australian entrepreneurs who previously founded Blockchain Global, a bitcoin company that collapsed owing creditors $58 million. The liquidator of Blockchain Global has referred both Lee and Xu to ASIC for alleged breaches of the Corporations Act. Lee has since denied that HyperVerse was a scam and disputed his role as founder; Xu could not be reached for comment.
The promotional strategy employed celebrity endorsements to build credibility with potential investors. Video messages of support from high-profile figures—including Apple co-founder Steve Wozniak and actor Chuck Norris—were released on Twitter in January 2022, creating an appearance of institutional legitimacy. Despite being flagged by international regulators as a potential "scam" and "suspected pyramid scheme," HyperVerse appears to have operated without regulatory intervention in Australia. ASIC has indicated it does not intend to pursue enforcement action at this time, leaving significant questions about regulatory gaps in Australia's oversight of cryptocurrency investment schemes.
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