TLDR
- Rodney “Bitcoin Rodney” Burton pleaded guilty in federal court.
- The charge is tied to HyperFund’s $1.8B global crypto fraud scheme.
- HyperFund promised daily passive rewards of 0.5% to 1%.
- Prosecutors said HyperFund’s claimed crypto-mining operations did not exist.
- Burton received at least $7.85M from the unlicensed money transmission business.
Rodney Burton, known publicly as “Bitcoin Rodney,” pleaded guilty in federal court to a conspiracy charge connected to HyperFund, a $1.8 billion cryptocurrency fraud scheme that prosecutors said targeted investors around the world.
Burton, 56, of Miami, also has a residence in Prince George’s County, Maryland. He pleaded guilty to conspiracy to operate an unlicensed money transmitting business, according to the U.S. Attorney’s Office for the District of Maryland.
Federal prosecutors said Burton helped promote HyperFund and used investor funds to enrich himself between June 2020 and January 2022. He faces a maximum sentence of five years in federal prison, with sentencing scheduled for July 23 before U.S. District Judge Richard D. Bennett.
HyperFund Promised Daily Crypto Returns
According to the plea agreement, HyperFund presented itself as a cryptocurrency investment platform but operated as a global wire-fraud scheme. Prosecutors said the project obtained about $1.8 billion from victim-investors worldwide.
HyperFund promoted “memberships” that allegedly offered passive rewards of 0.5% to 1% per day until investors doubled or tripled their initial investment. Promotional materials claimed the returns would be funded partly through revenue from large-scale crypto-mining operations.
Federal prosecutors said those crypto-mining operations did not exist. The company later began blocking investor withdrawals in 2021, leaving participants unable to access promised funds.
Authorities said the scheme relied on false claims to attract new investors and maintain confidence in the platform. The case has become one of several major crypto fraud prosecutions brought by U.S. authorities as federal agencies continue targeting investment schemes tied to digital assets.
Prosecutors Detail Burton’s Role
Court documents said Burton conspired to provide unlicensed money transmitting services to promote HyperFund. Prosecutors said he controlled several companies that appeared to provide consulting services but actually operated as unlicensed money transmitting businesses.
Through those entities, Burton personally received at least $7,851,711 in proceeds from the unlicensed operation. Prosecutors said some of the funds came from HyperFund victim-investors located in Maryland.
The guilty plea was announced by U.S. Attorney Kelly O. Hayes, together with Special Agent in Charge Kareem Carter of IRS Criminal Investigation’s Washington D.C. Field Office and Special Agent in Charge Pete Gizas of Homeland Security Investigations in New York.
U.S. authorities said IRS-CI and HSI investigated the case. Assistant U.S. Attorney Christina A. Hoffman is prosecuting the federal case.
Burton’s plea follows earlier enforcement actions tied to HyperFund, including cases involving alleged operators and promoters connected to the platform. Sam Lee, a co-founder associated with HyperFund, was among individuals previously charged in relation to the broader operation.
Crypto Fraud Cases Reach U.S. Courts
The HyperFund case adds to a growing list of cryptocurrency prosecutions in U.S. courts, where authorities have focused on platforms accused of using investment promises, referral structures, and false revenue claims to attract funds.
Federal investigators have increasingly targeted alleged crypto schemes that combine digital asset branding with unlicensed money transmission, wire fraud, and investor solicitation. In many cases, prosecutors have said investors were promised high returns linked to trading, mining, staking, or proprietary crypto strategies that were not supported by real operations.
The case also reflects continued scrutiny of promoters who allegedly helped move investor funds or marketed crypto platforms without proper authorization. Prosecutors said Burton’s conduct was tied not only to promotional activity but also to money transmission services that were not licensed.
Burton’s sentencing will determine the prison term, if any, under the federal charge. The maximum penalty is five years, though the final sentence will depend on court findings, sentencing guidelines, and other factors considered by the judge.
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