SEC accuses Sam Lee of deceitful advertising, but he dismisses concerns about false information affecting him.
Just hours after being charged by the United States, Sam Lee, the founder of the HyperVerse crypto pyramid scheme that is accused of misappropriating $1.7 billion in investor funds, continues to promote crypto projects online.
The Securities and Exchange Commission (SEC) levied charges against Lee and HyperVerse on January 29, alleging that they deceitfully advertised profitable returns on cryptocurrency schemes funded by investor funds.
Sam Lee’s Controversial Endorsement of VEND
The following day, nevertheless, the 35-year-old Australian appeared in a Facebook video endorsing his newest endeavor, the South African cryptocurrency venture VEND.
Sam Lee, the project’s CEO, asserts in the seventy-minute video that his circumstances can only improve and that he has realized that “the worst is essentially individuals lying to regulators and regulators believing their version of the story.”
Additionally, he cautions prospective investors against adopting a “mindset of loss.”
Sam Lee stated, as cited by The Guardian, “Regarding the news cycle, false information does not affect me… Therefore, it is very inexpensive to establish the veracity of a statement.” It is noteworthy to mention that Lee does not make explicit reference to the allegations.
VEND is a series of livestreams where participants can pitch prospective investors on their cryptocurrency ventures. By subscribing to the projects and viewing the presentations, audience members obtain rewards.
The majority of VEND initiatives are Tether (USDT)-based. A project known as 369 Era, introduced on February 2 by Mahmoud Elawa, purportedly provided subscription packages with the potential to increase investment by 500%, from 27,000 USDT to 162,000 USDT.
Sam Lee disrupted the 369 presentation to obliquely discuss how the universal language of mathematics can unite all individuals.
“Believe in mathematics, bitcoin, blockchain, and the consensus surrounding that, and ultimately, Mahmoud,” he advises.
By subscribing to a project, users may allegedly earn 3% in daily returns. Additionally, a referral program is available, which awards a 30% commission.
The Guardian observes that while VEND asserts that advertisers fund the project’s revenue, no specific advertisers have been identified.