According to the Guardian, Australia’s Assistant Treasury and Minister for Financial Services Stephen Jones said that he will ask the Australian Securities and Investments Commission why it did not warn consumers about HyperVerse’s crypto scheme as other nations have done.

Reports said that the United Kingdom, New Zealand Canada, Germany, and Hungary among others had issued warnings regarding the scheme as early 2021.

Jones said that “this type of scheme works because it convinces innocent people to put their money into something that may not exist. The only way they can make money is by attracting new investors.” “I don’t understand why there wasn’t a warning.” It was pretty obvious that this operation should have raised concerns.

According to a investigation conducted by Guardian Australia, thousands of people lost millions of dollars in the HyperVerse crypto-scheme. The scheme was operated by an entity named HyperTech, and promoted and ran by CEO Steven Reece Lewis who does not appear.

The liquidators alerted ASIC about Lee and Xu for breaking the law, but the regulator said it does not intend to take action at this time, according to a report by The Guardian. The liquidators notified ASIC that Lee and Xu had broken the law, but the regulator stated it did not intend to act at this time.

ASIC didn’t immediately respond to CoinDesk’s request for a comment. HyperTech was not available for comment.

Read more: Australia proposes new licensing regime for crypto exchanges and aims for draft legislation by 2024

Oliver Knight is the editor.