The HyperVerse Crypto Scheme Collapse
The HyperVerse crypto collapse, orchestrated by Blockchain Global, serves as a notorious example of the risks inherent in the cryptocurrency market when it imploded, leaving a trail of financial devastation for numerous investors. The scheme, which had managed to attract millions of dollars through the allure of major celebrity endorsements, ultimately collapsed, resulting in the loss of substantial sums of money for small investors who had been drawn to the promise of lucrative returns.
The Mysterious CEO
The CEO of HyperVerse, Steven Reece Lewis, was presented as a highly accomplished individual with an impressive array of credentials. However, his existence has come into question, casting doubt on the legitimacy of the entire HyperVerse operation. Lewis was purported to have a storied background that included:
- A graduation from the University of Leeds
- A master’s degree from Cambridge University
- A successful sale of a company to Adobe
- The launch of an IT start-up firm
- A tenure at Goldman Sachs, a firm with a reputation for being deeply entrenched in global finance
- Being headhunted by HyperVerse for his expertise
Despite these claims, there is a growing suspicion that Steven Reece Lewis may not be a real person, as no verifiable records of his existence or his alleged achievements have been found.
Investigation Findings
The Guardian’s investigation into the background of Steven Reece Lewis, the supposed CEO of HyperVerse, revealed a stark contrast between his claimed affiliations and the actual records from institutions and companies. The table below summarizes the discrepancies found during the investigation:
| Claimed Affiliation | Actual Record |
|---|---|
| University of Leeds Graduate | No record found |
| Master’s Degree from Cambridge | No record found |
| Sold a company to Adobe | No such sale recorded |
| Employment at Goldman Sachs | No record of employment |
Neither the universities mentioned nor Adobe nor Goldman Sachs have any record of an individual by the name of Steven Reece Lewis. Furthermore, Companies House, the UK-based register of businesses, also does not have any records of him. His online presence appears to be limited to his association with HyperVerse, raising further doubts about his authenticity.
The Founders’ Activities
The co-founders of Blockchain Global, Sam Lee and Ryan Xu, have been central figures in the HyperVerse narrative. Sam Lee has publicly denied that HyperVerse was a scam and has disputed his founding status, while Ryan Xu has remained silent on the matter. Despite these denials, both have been referred to the Australian Securities and Investments Commission for their roles in the scheme.
Sam Lee, in particular, has been linked to a web of other crypto investment platforms, including HyperFund and the ironically named “We Are All Satoshi” platform. “We Are All Satoshi” is a nod to Satoshi Nakamoto, the pseudonymous creator of Bitcoin, whose vision for a decentralized financial system stands in stark contrast to the alleged fraudulent activities associated with these schemes.
Ryan Xu, on the other hand, has been mostly inactive in the public eye since the collapse of HyperVerse. His lack of response has done little to assuage the concerns of investors and regulators alike.
Both founders’ activities have raised serious questions about the integrity of their operations and the broader implications for the cryptocurrency industry.
Regulatory Actions
Regulatory scrutiny has intensified around the activities of Sam Lee, one of the co-founders of Blockchain Global. In California, a ‘desist and refrain order’ was issued against Lee for his involvement with the “We Are All Satoshi” scheme. This order labeled the operation as a “fraudulent pyramid and Ponzi scheme,” highlighting the severity of the allegations against him.
The regulatory action taken against Lee is a significant step in addressing the malpractices associated with some cryptocurrency schemes. It serves as a warning to other operators in the industry and underscores the importance of regulatory compliance and investor protection in the volatile and often opaque world of crypto investments.
The collapse of Blockchain Global and its associated HyperVerse scheme has had a profound impact on investors, many of whom have suffered significant financial losses. The exact amount lost remains unclear, with estimates ranging from tens of millions to potentially billions of dollars. This uncertainty underscores the inherent risks and lack of transparency that can plague the cryptocurrency industry.
The saga of HyperVerse and the mysterious figure of Steven Reece Lewis serve as a cautionary tale about the allure of quick riches in the world of crypto investments. It highlights the need for greater due diligence, regulatory oversight, and a reminder that the original ethos of cryptocurrency—to empower individuals and avoid centralized financial control—is far removed from the reality of today’s market, which is often marred by deception and fraud.
In the wake of Blockchain Global’s downfall, the cryptocurrency industry faces a critical moment of reflection. It must address the challenges of trust and legitimacy if it is to evolve and mature into a stable financial ecosystem that can truly benefit the “little guy” it once promised to empower.
