Key Takeaways
- Rodney Burton, known as “Bitcoin Rodney,” admitted guilt to operating an unlicensed money transmission business connected to HyperFund
- The fraudulent HyperFund platform defrauded global investors of approximately $1.8 billion by falsely promising daily returns between 0.5% and 1%
- Burton collected more than $7.8 million personally through his involvement in the fraudulent operation
- Investor withdrawals were frozen in late 2022, leading to the platform’s ultimate collapse
- Burton could receive a maximum sentence of five years in federal custody, with his sentencing hearing scheduled for July 23
A Miami resident who went by the online moniker “Bitcoin Rodney” has entered a guilty plea in federal court for his participation in a massive $1.8 billion digital currency fraud operation.
Rodney Burton, age 56, confessed to conspiring to run an unlicensed money transmission enterprise that facilitated the promotion of HyperFund, a platform federal prosecutors characterize as an extensive wire fraud scheme.
Kelly O. Hayes, the US Attorney for Maryland’s District, made the announcement public alongside representatives from the IRS Criminal Investigation division and Homeland Security Investigations.
Inside the HyperFund Operation
HyperFund presented itself to the public as a credible cryptocurrency investment opportunity. The platform lured investors with promises of consistent daily passive earnings ranging from 0.5% to 1%, allegedly generated through cryptocurrency mining operations.
According to federal prosecutors, no such mining activity ever took place.
The operation sold tiered “memberships” while assuring participants their original investments would multiply two or three times over specific periods. By 2021, HyperFund had started blocking all withdrawal requests.
Originally established as HyperCapital in January 2022, the venture rebranded to HyperFund six months into operations before ultimately shutting down in November 2022.
Burton’s Involvement and High-Profile Endorsements
Federal court filings reveal Burton actively promoted HyperFund from June 2020 through January 2022. He managed multiple corporate entities that purported to provide consulting services while actually channeling investor funds through the fraudulent scheme.
Burton extracted over $7.8 million in personal profits from the operation.
He leveraged his public persona to attract investors. Reports from Rolling Stone indicate Burton recruited high-profile figures including Oscar-winning actor Jamie Foxx and hip-hop artist Rick Ross to boost his credibility.
Burton organized a cryptocurrency conference in Miami during 2021. The event featured prominent attendees such as Jordan Belfort, Akon, Tiffany Haddish, and Draymond Green.
Additional Defendants and Future Proceedings
Two additional individuals received charges in January 2024 related to the conspiracy. Sam Lee, a 35-year-old Australian national identified as a HyperFund co-founder, has not been convicted of any charges.
Brenda Chunga from Maryland is facing accusations of conspiracy to commit securities fraud and wire fraud. Her sentencing date has been postponed several times and is currently set for June 29.
HyperFund represents one of the most significant cryptocurrency fraud cases in recent history. The scheme is comparable to OneCoin, which extracted over $4 billion from victims, and BitConnect, which resulted in approximately $2 billion in investor losses.
Burton’s sentencing hearing is scheduled for July 23 before US District Judge Richard D. Bennett. He could face up to five years in federal prison.
Assistant US Attorney Christina A. Hoffman is handling the prosecution.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
