Is it permissible to invest in the Hyperfund Investment Scheme?
QUESTION:
I hope you and your family are doing well. I would like to ask a question please.
I would like to ask you about an investment, which is called Hyper Fund. I have attached a link for your information https://emea01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fyoutu.be%2FvLZn7ydRCDA&data=04%7C01%7C%7C431d5262ca604cd3420108d97da8a410%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637678985529285173%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=KUTDIfT1nMalhg0FZq2cIlywPF%2FXVYuXY8o56UVFlU4%3D&reserved=0
I was going to write how the investment works in this email, but it would have been long to write and read for you. If you watch the Youtube video, you will understand everything.
Basically you buy a membership and you receieve daily returns in Hyper Units. Also you can invite other people to join and earn a share of there HU’s. But this is not a requirement.
Once you have obtained Hyper Units, then to withdraw them is another process. Please see this link https://emea01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fyoutu.be%2FJQi40xTdtGM&data=04%7C01%7C%7C431d5262ca604cd3420108d97da8a410%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637678985529295173%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=KKgYfPSLyL5crodt7EoogD4XqbBpcw%2FCxFof097e8ZA%3D&reserved=0
Basically you convert your HU’s to MOF(which is there coin), then to USDT, which you can convert to cryptocurrency or fiat currency.
I would appreciate any advice for you to look into this scheme and if this type of scheme is permissible to invest in and if it is shariah compliant.
Thank you very much
JazakAllah Khairan
ANSWER:
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
It will not be permissible to invest in the Hyperfund investment scheme since it constitutes buying “convertible bonds” [1] which involves interest [2].
Also, is advised to avoid this type of investment scheme altogether; the Financial Conduct Authority (FCA) have issued a security fraud warning regarding it [1].
May the Almighty increase your zeal in learning about Islām. Āmeen.
And Allah Ta’ālā Knows Best
Masihullah Bhaiyat
Concurred by: Hanif Yusuf
References
[1]
http://inlinesolutions.co.za/passive-income/hyperfund/#:~:text=How%20does%20Hyper%20Fund%20Work,bonds%20and%20structure%20them%20optimally.
https://www.fca.org.uk/news/warnings/hyperfund
https://behindmlm.com/companies/hyperfunds-homepage-added-to-fca-securities-fraud-warning/
https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/convertible-bond/
“A convertible bond is a type of debt security that provides an investor with a right or an obligation to exchange the bond for a predetermined number of shares in the issuing company at certain times of a bond’s lifetime. It is a hybrid security that possesses features of both debt and equity.”
“Similar to regular bonds, a convertible bond comes with a maturity date and pays interest to investors.”
[2]
وإن هذه السندات تباع في السوق وتشترى بثمن يتراضي عليه الطرفان. وهو يبيعه في السوق بمائة وخمسة، ليحصل المشترى على مائة وعشرة عند الأداء ولاشك أن هذه معاملات ربوية محرمة شرعاً
(Fiqh al Buyū': 1:354: Maktabah Ma'ārif al-Qur'ān )
سوال : - انعامی بانڈ کی شرعی حیثیت کیا ہے؟ اس کا خرید نا درست ہے یا نہیں؟ جواب: - انعامی بانڈ کا انعام لینا شرعاً جائز نہیں، اس میں سود بھی ہے اور قمار کی روح
(Fatāwā 'Uthmānī: 3:172: Qur'ānic Studies Publishers: Karāchī Pakistan)
جواب:.... انعامی بونڈ ز کی رقم لینا جائز نہیں، جتنے میں خریدا ہے، اتنی ہی رقم میں اسے پہچنا یا بینک کو واپس کر دیتا
(Aapke Masāil Aur Unka Hal: 7:378: Maktabah Ludhyānwī)
[2]
http://inlinesolutions.co.za/passive-income/hyperfund/#:~:text=How%20does%20Hyper%20Fund%20Work,bonds%20and%20structure%20them%20optimally.
https://www.fca.org.uk/news/warnings/hyperfund
https://behindmlm.com/companies/hyperfunds-homepage-added-to-fca-securities-fraud-warning/
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Posted in Buyoo' (Money-related issues)Halaal & Haraam on 6th Apr 2022 by Our Imam | 580 Views
