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Questions and Answers
What characterizes a Ponzi scheme?
Which of the following schemes was NOT mentioned as being involved with Sam Lee and Zijing Xu?
Which organization issued a ‘desist and refrain order’ to Sam Lee?
Why were Lee and Xu's schemes able to operate unchecked in Australia?
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What could be the potential total amount lost by investors if Lee's claims of two million community members are accurate?
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Which of the following statements about the HyperTech group is true?
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Where did Sam Lee relocate to in 2021?
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Which of the following names was NOT associated with Sam Lee's investment platforms?
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What is a defining characteristic of a Ponzi scheme?
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Which countries issued consumer warnings about Lee and Xu's schemes?
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What was the minimum investment amount associated with the schemes' total valuation?
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What was the primary reason that investors lost money in these crypto schemes?
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Which of the following platforms remained active as of this year?
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What order was issued against Lee for the operation of We Are All Satoshi?
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Which individual is known as 'the crown prince of bitcoin' in Australia?
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What is the suspected nature of the We Are All Satoshi platform according to the California Commissioner?
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What distinguishes the income flow of a Ponzi scheme from legitimate investments?
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Why have Sam Lee and Zijing Xu's investment schemes escaped significant scrutiny in Australia?
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What total value would Sam Lee's investment schemes represent if the claimed community size is correct?
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What are the bases for international warnings issued regarding Lee and Xu's schemes?
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In which year was the HyperTech group established by Lee and Xu?
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What action did California's Commissioner of Financial Protection and Innovation take against Lee?
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What is the status of the platforms StableDao and We Are All Satoshi as of recent reports?
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What notable action occurred regarding the Hyper brand's relaunch in August of the current year?
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Study Notes
Crypto Schemes in Australia
- Thousands of investors have lost millions of dollars in crypto investment schemes in Australia.
- Two of the schemes, HyperFund and HyperVerse, were established by Sam Lee and Zijing “Ryan” Xu.
- Lee and Xu are founders of the collapsed Australian bitcoin company Blockchain Global.
- International financial watchdogs in the UK, New Zealand, Canada, Germany, and Hungary issued warnings about the investment platforms operated by Lee and Xu.
- Lee has a history of promoting investment platforms, including StableDao, VidiLook, VAV, V.E.N.D, and We Are All Satoshi.
- In September 2023, California's Commissioner of Financial Protection and Innovation ordered Lee to cease operations of the We Are All Satoshi investment platform, alleging it was a fraudulent pyramid and Ponzi scheme.
- Lee relocated to Dubai in 2021; Xu's whereabouts are unknown.
- The schemes' potential value could be at least USD450millionbasedonLee′sclaimofa2million−personcommunity,withaminimuminvestmentofUSD450 million based on Lee's claim of a 2 million-person community, with a minimum investment of USD450millionbasedonLee′sclaimofa2million−personcommunity,withaminimuminvestmentofUSD300.
- Blockchain analysts estimate consumer losses to HyperVerse in 2022 amounted to USD$1.3 billion.
- Lee denies that his schemes are scams, attributing the website's inactivity to efforts to hold the company accountable.
- He encourages investors to be patient and sign up for a new platform called StableDao.
- The HyperVerse website became inactive sometime between April and November 2023.
Crypto Investment Schemes in Australia
- Thousands of investors lost millions of dollars through crypto investment schemes in Australia, despite warnings from financial authorities overseas.
- Two of the main schemes were HyperFund and HyperVerse.
- The schemes were established by Sam Lee and Zijing "Ryan" Xu, who were both involved in the collapsed Australian bitcoin company Blockchain Global.
- International organizations issued warnings about the schemes, including the UK, New Zealand, Canada, Germany, and Hungary.
- Lee and Xu also ran HyperCapital, launched in 2018, and Lee has been involved in promoting further investment platforms, including StableDao, VidiLook, VAV, V.E.N.D, and We Are All Satoshi.
- Lee relocated to Dubai in 2021, and Xu’s whereabouts are unknown.
- In September 2023, California’s Commissioner of Financial Protection and Innovation issued a "desist and refrain order" to Lee for the operation of the We Are All Satoshi investment platform, alleging it was a "fraudulent pyramid and Ponzi scheme".
- The HyperVerse website became inactive sometime between April and November 2023, according to the Internet Archive.
- Lee was asked in February 2023 if HyperVerse was a scam, and responded by saying “No, because if it was a scam, the website would be offline and I wouldn’t be even wasting my time trying to get the information from the community in order to hold corporate accountable.”
- Based on Lee’s claim that the community numbered two million people, the schemes' value would be at least USD450m,basedonaminimuminvestmentofUSD450m, based on a minimum investment of USD450m,basedonaminimuminvestmentofUSD300.
- Based on figures from senior leaders of the HyperVerse team, the amount potentially lost could run into the billions.
- US-based blockchain analysts Chainalysis estimated consumer losses to HyperVerse in 2022 amounted to USD$1.3bn.
- Lee also urges investors to be patient if they want to get their money back and sign up to a new platform known as StableDao.
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Description
Explore the dark side of cryptocurrency investments in Australia. This quiz delves into the major schemes orchestrated by Sam Lee and Zijing 'Ryan' Xu, including their impacts and international warnings. Test your knowledge on the recent developments related to these controversial investment platforms.
