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actor-paid-to-pose-as-crypto-ceo-“deeply-sorry”-about-$1.3-billion-scam

Actor paid to pose as crypto CEO “deeply sorry” about $1.3 billion scam

A screenshot from Jack Gamble's video outing Stephen Harrison as HyperVerse's fake CEO, posted on Gamble's

Enlarge / A screenshot from Jack Gamble’s video outing Stephen Harrison as HyperVerse’s fake CEO, posted on Gamble’s “Nobody Special Finance” YouTube channel.

An actor who was hired to pretend to be the highly qualified CEO of a shady, collapsed cryptocurrency hedge fund called HyperVerse has apologized after a YouTuber unmasked his real identity last week.

An Englishman currently living in Thailand, Stephen Harrison confirmed to The Guardian that HyperVerse hired him to pose as CEO Steven Reece Lewis. Harrison told The Guardian that he was “deeply sorry” to HyperVerse investors—who lost a reported $1.3 billion after buying into a cryptocurrency-mining operation that promised “double or triple returns,” but did not exist, Court Watch reported.

Harrison claimed that he had “certainly not pocketed” any portion of those funds. Instead, he told The Guardian that he was paid about $7,500 over nine months. To play the part of CEO, he was also given a “wool and cashmere suit, two business shirts, two ties, and a pair of shoes,” The Guardian reported.

Harrison said that he had no part in HyperVerse’s alleged scheme to woo investors with false promises of high returns.

“I am sorry for these people,” Harrison said. “Because they believed some idea with me at the forefront and believed in what I said, and God knows what these people have lost. And I do feel bad about this.”

He also said that he was “shocked” to find out that HyperVerse had falsified his credentials, telling investors that Harrison was a fintech whiz—supposedly earning prestigious degrees before working at Goldman Sachs, then selling a web development company to Adobe before launching his own IT startup.

Harrison claimed that he only found out about this resume fraud when The Guardian investigated and found that nothing on his resume checked out.

“When I read that in the papers, I was like, blooming heck, they make me sound so highly educated,” Harrison told The Guardian.

He confirmed that he had received general certificates of secondary education but that his expertise was “certainly not on that level” that HyperVerse claimed that it was.

“They painted a good picture of me, but they never told me any of this,” Harrison told The Guardian.

Getting hired as fake CEO

According to The Guardian, Harrison was working as an unpaid freelance sports commentator when a “friend of a friend” told him about the HyperVerse gig.

The contract that Harrison signed was with an Indonesian-based talent agency called Mass Focus Ltd. It stated that he would be hired as “presenter talent,” The Guardian reported. However, The Guardian could find “no record of a company of this name on the Indonesian company register.”

Harrison’s agent allegedly told him that it was common for companies to hire corporate “presenters” to “represent the business” and reassured him that HyperVerse was “legitimate.”

Even after those assurances, Harrison said that he was still worried that HyperVerse might be a “scam,” researching the company online but ultimately deciding that “everything seemed OK.”

“So, I rolled with it,” Harrison told The Guardian.

Harrison said that promotional videos that he recorded as HyperVerse CEO were filmed in “makeshift studios” in Bangkok. He said that he was asked to start using the fake name Steven Reece Lewis while filming the second video. When he questioned why a fake name was necessary, HyperVerse allegedly told him that he was “acting the role.”

His agent allegedly told him that this was “perfectly normal” and after that, he “never went online and checked about Steven Reece Lewis,” he told The Guardian.

“I looked on YouTube occasionally, way back when they put the presentations up, but apart from that I was detached from this role,” Harrison said.

Over nine months, Harrison mostly worked one to two hours monthly, making videos posing as HyperVerse’s CEO.

There was also a Twitter account launched under the fake name Steven Reece Lewis. The Guardian noted that the date of Harrison’s final paycheck from HyperVerse “coincided with the last date the Twitter account was active,” but Harrison told The Guardian that he “had no oversight” of that account. When he was ending his stint as fake CEO, Harrison told The Guardian that he “requested that the Twitter account be shut down.”

Harrison also told The Guardian that he had “no contact at any point” with HyperVerse heads Sam Lee and Ryan Xu, exclusively dealing with a local contact in Thailand.

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from-cz-to-sbf,-2023-was-the-year-of-the-fallen-crypto-bro

From CZ to SBF, 2023 was the year of the fallen crypto bro

From CZ to SBF, 2023 was the year of the fallen crypto bro

Aurich Lawson | Getty Images (Bloomberg/Antonio Masiello)

Looking back, 2023 will likely be remembered as the year of the fallen crypto bro.

While celebrities like Kim Kardashian and Matt Damon last year faced public backlash after shilling for cryptocurrency, this year’s top headlines traced the downfalls of two of the most successful and influential crypto bros of all time: FTX co-founder Sam Bankman-Fried (often referred to as SBF) and Binance founder Changpeng Zhao (commonly known as CZ).

At 28 years old, Bankman-Fried made Forbes’ 30 Under 30 list in 2021, but within two short years, his recently updated Forbes profile notes that the man who was once “one of the richest people in crypto” in “a stunning fall from grace” now has a real-time net worth of $0.

In November, Bankman-Fried was convicted by a 12-member jury of defrauding FTX customers, after a monthlong trial where federal prosecutors accused him of building FTX into “a pyramid of deceit.” The trial followed months of wild headlines—comparing Bankman-Fried to a cartoon villain, accusing Bankman-Fried of stealing $2.2 billion from FTX customers to buy things like a $16.4 million house for his parents, and revealing that Bankman-Fried casually joked about losing track of $50 million.

Defending against his crimes at FTX, Bankman-Fried argued that “dishonesty and unfair dealing” aren’t fraud and even claimed that he couldn’t recall what he did at FTX, while FTX scrambled to recover $7.3 billion and put out the “dumpster fire.”

Ultimately, Bankman-Fried’s former FTX/Alameda Research partners, including his ex-girlfriend Caroline Ellison, testified against him. Ellison’s testimony led to even weirder revelations about SBF, like Bankman-Fried’s aspirations to become US president and his professed rejection of moral ideals like “don’t steal.” By the end of the trial, it seemed like very few felt any sympathy for the once-FTX kingpin.

Bankman-Fried now faces a maximum sentence of 110 years. His exact sentence is scheduled to be determined by a US district judge in March 2024, Reuters reported.

While FTX had been considered a giant force in the cryptocurrency world, Binance is still the world’s biggest cryptocurrency exchange—and considered more “systemically important” to crypto enthusiasts, Bloomberg reported. That’s why it was a huge deal when Binance was rocked by its own scandal in 2023 that ended in its founder and CEO, Zhao, admitting to money laundering and resigning.

Arguably Zhao’s fall from grace may have been more shocking to cryptocurrency fans than Bankman-Fried’s. Just one month prior to Zhao’s resignation, after FTX collapsed, The Economist had dubbed CZ as “crypto’s last man standing.”

Zhao launched Binance in 2017 and the next year was featured on the cover of Forbes’ first list of the wealthiest people in crypto. Peering out from under a hoodie, Zhao was considered by Forbes to be a “crypto overlord,” going from “zero to billionaire in six months,” where other crypto bros had only managed to become millionaires.

But 2023 put an abrupt end to Zhao’s reign at Binance. In March, the Commodity Futures Trading Commission (CFTC) sued Binance and Zhao over suspected money laundering and sanctions violations, triggering a Securities and Exchange Commission lawsuit in June and a Department of Justice (DOJ) probe. In the end, Binance owed billions in fines to the DOJ and the CFTC, which Secretary of the Treasury Janet Yellen called “historic penalties.” For personally directing Binance employees to skirt US regulatory compliance—and hide more than 100,000 suspicious transactions linked to terrorism, child sexual abuse materials, and ransomware attacks—Zhao now personally owes the CFTC $150 million.

On the social media platform X (formerly Twitter), Zhao wrote that after stepping down as Binance’s CEO, he will be taking a break and likely never helming a startup ever again.

“I am content being [a] one-shot (lucky) entrepreneur,” Zhao wrote.

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