Regulators Investigating Collapsed Crypto Firm That Owes Creditors $58,000,000 After Going Bust in 2021: Report

Regulators are currently investigating Blockchain Global, a collapsed cryptocurrency firm that owes creditors a whopping $58,000,000 after going bankrupt in 2021, according to a recent report. The Australian Securities and Investment Commission (ASIC) has taken a keen interest in the company’s directors, Sam Lee and Ryan Xu, after a newspaper investigation revealed their involvement in a previous crypto scheme called Hyperverse. ASIC initially began investigating Lee and Xu for potential violations of Australia’s Corporations Act following the downfall of Blockchain Global, but no action was taken at that time. However, after The Guardian Australia linked the directors to Hyperverse, ASIC has resumed its investigation by scrutinizing Blockchain Global’s liquidation report. The newspaper report also shed light on the significant losses incurred in the Hyperverse investment scheme, which is believed to be a potential scam and suspected pyramid scheme. The US Internal Revenue Service (IRS) claims that early investors received payments using funds from later investors, and the alleged Bitcoin mining operations of Hyperverse were found to be non-existent. The estimated losses for Hyperverse this year are around $1.3 billion. Moreover, ASIC’s investigation into the collapse of Blockchain Global has unearthed a possible connection to HCash, a cryptocurrency associated with the Hyper investment schemes. The report suggests that rewards from previous Hyper schemes were converted to HCash before being converted to other cryptocurrencies. The current whereabouts of Ryan Xu remain unknown, while Sam Lee has yet to respond to the report.