Rodney Burton, a Florida man known online as “Bitcoin Rodney,” has pleaded guilty to federal charges related to his role in promoting HyperFund, a cryptocurrency investment scheme U.S. authorities have labeled a massive fraud.
The plea was announced by the U.S. Attorney’s Office for the District of Maryland. Burton admitted to conspiring to operate an unlicensed money-transmitting business in connection with the platform.
Role in the Scheme
Federal prosecutors state that Burton’s involvement lasted from June 2020 to January 2022. During this period, he controlled several companies that offered consulting services and helped market HyperFund to investors. Court documents allege he received at least $7.8 million from the scheme and used investor funds for personal enrichment.
Burton faces a maximum five-year prison sentence for the conspiracy charge. His sentencing is scheduled for July 23.
The $1.8 Billion Fraud
Prosecutors describe HyperFund as a global operation that lured investors with promises of daily returns between 0.5% and 1%. The platform claimed these profits were generated through cryptocurrency mining activities.
However, investigators allege the company did not generate the mining revenue it advertised. Instead, the U.S. Securities and Exchange Commission (SEC) claims HyperFund operated as a Ponzi-style scheme, using funds from new investors to pay earlier participants.
The U.S. Attorney’s Office values the scheme at approximately $1.8 billion. The SEC, in a separate January 2024 civil complaint, estimated the total funds collected from investors worldwide at around $1.7 billion.
Broader Prosecutions
Burton is not the only individual facing charges in the case. In January 2024, federal prosecutors charged Australian national Sam Lee and Maryland resident Brenda Chunga with conspiracy to commit securities fraud and wire fraud related to HyperFund.
Lee has been identified by authorities as a co-founder of the platform. He has been charged but has not been convicted. Chunga’s sentencing has been postponed multiple times and is now scheduled for June 29.
Public filings show the fraudulent enterprise underwent several rebrands. It operated as HyperCapital in early 2022 before returning to the HyperFund name. The platform ultimately collapsed in November 2022.
Based on reporting from crypto.news.
