Maryland 'Bitcoin Beautee' helps bilk $1.8 billion from cryptocurrency backers: Feds – Fox Baltimore
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by Chris Berinato & Keith Daniels
(WBFF) — A Severna Park woman is one of three people named in a federal indictment, accused of orchestrating a cryptocurrency scheme worth $1.89 billion.
According to a news release from the U.S. Attorney for the District of Maryland, Brenda Chunga, 43, also known as “Bitcoin Beautee,” pleaded guilty to conspiracy to commit securities fraud and wire fraud for her role as a promoter of HyperFund.
“The level of alleged fraud here is staggering,” said U.S. Attorney Erek Barron in a news release. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”
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Prosecutors say Chunga conducted online investor meetings, including in Maryland, to promote HyperFund’s investment programs and which detailed the purported returns that prospective investors could earn.
Chunga admitted that she personally received at least $3 million from her participation.
"There is immense amounts of money in crypto," says Christopher Alexander, a cryptocurrency expert and chief analytics officer for Pioneer Development Group.
Alexander has no connection to Chunga's case but details why potential involvement with cryptocurrency can be attractive and a potentially dangerous moneymaker.
"First of all, you should never put your money in something that you don't know what it does. There are huge returns that are possible and when you have opportunities to make that kind of money, unfortunately you attract very, very disreputable people that will take advantage to of people to get that money," said Alexander.
Chunga will be required to pay back her victims' losses, according to prosecutors. Chunga could face five years in prison.
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Her sentencing date has not been set.
Two other people Sam Lee, 35, an Australian citizen and, 54-year-old Rodney Burton, also known as “Bitcoin Rodney,” 54, of Miami, Florida, were also indicted.