New Delhi: Following a notice that financial fraud-fighting authorities are investigating a business named Hyper Fund, the government is keeping a careful eye on cryptocurrencies floating in the market located outside of the nation.

According to sources, Hyper Fund, a DEFI run by Hyper Tech Group, has recently come under scrutiny. The Hyper Fund, according to the group, was created to provide a decentralized financial infrastructure. In mid-2020, the Hyper Fund was launched.

According to the company website, Ryan Xu is the CEO. However, using the Multi-Level Marketing (MLM) model, Hyper Fund has been enticing investors with greater returns and such things, which is a standard practice in Ponzi Schemes, that got the authorities alerted in the first place.

According to reports, accusations against such funds have begun to come in from throughout the country. The Reserve Bank of India, the Union Finance Ministry, and the Securities and Exchange Board of India have all issued warnings against cryptocurrency trading in India. The Reserve Bank of India (RBI) intends to establish India's official digital currency, the E Rupee, in the near future.

Virtual currencies are not legal money, according to the Finance Ministry. As a result, VCs are not considered currencies. The RBI has also said that it has not granted any organization or corporation a licence or authority to operate or deal with Bitcoin or any other virtual currency. In June 2018, Pune police arrested Amit Bhardwaj and his brother Vivek Bhardwaj at the Delhi Airport in connection with an alleged Ponzi scheme.

Bhardwaj launched his own bitcoin mining business and is accused of defrauding more than 8,000 individuals throughout the country out of Rs 2,000 crore.

He has filed a complaint with the Delhi Police Special Cell, saying that on September 6, 2021, he got an extortion call and was told to pay protection money. According to authorities, he set up a multi-level marketing (MLM) scheme by enticing investors to send him Bitcoins in exchange for promised larger profits.

Regulators in the United Kingdom have issued warnings about similar funds, including warnings from the Financial Conduct Authority (FCA) for both Hyper Fund and Fund Advisor.

"We think this business may be offering financial services or products in the UK without our authorization," the FCA wrote on its website, which was initially published on March 23, 2021, and later amended on August 31. Almost all businesses and people in the UK who offer, promote, or sell financial services or products must be licenced or registered with us. We have not authorised this business, and it is targeting persons in the United Kingdom." "You will not have access to the Financial Ombudsman Service or be covered by the Financial Services Compensation Scheme (FSCS), so you are unlikely to get your money back if things go wrong," it warned investors.

According to the FCA, the websites used by these companies are http://thehyperfund.online, https://thehyperfund.com/Decentralised Finance (DEFI) offering through blockchain technology by HyperTech Group, which is based in Hong Kong, according to sources. Indian Regulators and Authorities have begun monitoring the situation.
Following the lead of financial regulators such as the Securities and Exchange Commission of the United States and the Financial Conduct Authority of the United Kingdom, Indian regulators, and enforcement agencies have begun monitoring investment in Hyper Fund, a Decentralised Finance offering by HyperTech Group based on blockchain technology.

Financial regulators throughout the world agree that Ponzi scheme organizers frequently utilise the newest invention, technology, product, or growing industry to lure investors and promise huge profits. When evaluating anything innovative, new, or "cutting-edge," potential investors are generally less suspicious of an investment opportunity. Hyper Fund bills itself as "The Strongest Rocket in Blockchain Finance" on its website.