Crypto Promoter Charged as $1.8bn HyperFund Scheme Unravels Under Federal Indictment

US prosecutors have formally charged a Miami based crypto promoter over his alleged role in a $1.8bn fraud scheme that sold fake passive income to investors while quietly locking them out of their money. Federal authorities say the operation relied on fabricated returns, nonexistent crypto mining, and aggressive online promotion, leaving victims trapped as funds were siphoned off for luxury assets. The indictment sends a clear warning. Selling crypto dreams backed by nothing is now a fast track to prison.

According to the indictment, the defendant acted as a public facing promoter for HyperFund and its successor platforms over nearly four years. Investors were told that buying platform memberships would generate fixed daily returns of up to one percent, compounding until their capital doubled or tripled. Prosecutors say those promises had no real revenue engine behind them.

HyperFund allegedly claimed payouts were funded by industrial scale crypto mining operations. Investigators say no such operations existed. Instead, investor money was recycled through the system to maintain the illusion of performance while promoters continued recruiting new victims.

By 2021, withdrawals were allegedly restricted and later blocked entirely. While users struggled to access their funds, prosecutors claim millions were redirected into personal spending, including high value real estate, luxury vehicles and a yacht.

The charges include conspiracy to commit wire fraud, multiple wire fraud counts, money laundering and operating an unlicensed money transmitting business. Each charge carries serious prison exposure. Authorities emphasised that promotion alone can constitute criminal liability when tied to fraudulent platforms.

Federal agencies warm crypto schemes are no longer being treated as speculative failures. They are being prosecuted as organised financial crime. Promoters are not influencers. They are targets.