Hyperverse has received a pyramid scheme fraud warning from the Hungarian National Bank.

As per the HNB’s August 19th warning;

HyperFund, which has been advertised more and more frequently in Hungarian social media lately, operates as a multi-level marketing (MLM) type business.

The key element of the system is membership, which can be achieved by paying various entrance fees. Those who join buy the membership with the entrance fees, in return they receive various commissions and credits.

This system is most widespread in pyramid schemes, behind which there is no real economic activity, the only income of the system is the payments of new entrants.

The sole purpose of the activity is to sell their products to as many people as possible, and for these people to resell the opportunity.

As noted by the Bank of Hungary, Hyperverse is a continuation of the HyperFund Ponzi scheme. BehindMLM reviewed HyperFund in April 2021, and can confirm the MLM side of the business operates as a pyramid scheme.

The HNB’s warning continues;

Based on the MNB’s market surveillance experience, it happens that the organizers of similar systems advertise themselves as carrying out activities related to cryptocurrencies, but in reality they operate an MLM system – in some cases a pyramid scheme – in which cryptocurrencies have no or negligible role.

Due to these risks, there is a significant chance that investors may permanently lose part or all of their invested capital.

Before investing, it is therefore strongly recommended that, in addition to evaluating the risks, investors also obtain reliable and real information about the activity recommended to us, the cryptocurrency concerned (e.g. exchange rate, volatility) and its operator (its actual existence, place of origin, internal regulations, applicable publicly available data, etc.).

It is especially advisable to ask the person recommending the investment decision or the organizer about the risks associated with the investment, possible losses and the possibilities of selling and exiting the deal.

This is also important because the information contained in the – typically sponsored – content appearing on social media is often insufficient to make informed investment decisions.

HyperFund and Hyperverse are run under the HyperTech Group umbrella, owned and operated by serial Ponzi scammers Ryan Xu (aka Zijing Xu) and Samuel Lee (aka Xue Lee).

Xu and Lee (right) fled to Dubai last year. They haven’t been seen in public since.

Following Hyperverse’s collapse earlier this year, preceded by HyperFund’s collapse in late 2021, two spinoff Ponzis have emerged; HyperOne and HyperNation.

While neither Ponzi scheme has reached the heights of HyperFund (Hyperverse never really went anywhere), website traffic to HyperNation is on the rise:

Over at HyperOne, things aren’t going well:

Hyperverse’s website is still active. While SimilarWeb tracks traffic down 28.59% month on month, Hyperverse’s website still recorded over 5 million visits in July 2022.

A large percentage of Hyper* investors are believed to be US residents. As of yet US authorities haven’t taken action against the Hyper* Ponzi schemes, Ryan Xu or Samuel Lee.