TLDR
- Miami resident Rodney Burton, known as “Bitcoin Rodney,” admitted guilt to conspiracy charges involving an unlicensed money transmission operation linked to HyperFund
- The HyperFund platform operated as an $1.8 billion international cryptocurrency scam promising investors daily profits between 0.5% and 1%
- Burton collected more than $7.8 million in personal profits from his involvement in the fraudulent enterprise
- The fraudulent platform stopped allowing withdrawals before its complete shutdown in November 2022
- Burton could receive a maximum sentence of five years behind bars when sentenced on July 23
A Miami-based cryptocurrency promoter who went by the online moniker “Bitcoin Rodney” has entered a guilty plea in federal court for his participation in an $1.8 billion digital currency fraud operation.
Rodney Burton, age 56, confessed to conspiracy charges related to running an unauthorized money transmission service that facilitated the promotion of HyperFund, a platform federal authorities characterize as a massive wire fraud enterprise.
The plea announcement came from Kelly O. Hayes, United States Attorney for Maryland’s District, working in coordination with investigators from both the Internal Revenue Service’s Criminal Investigation division and Homeland Security Investigations.
Understanding the HyperFund Operation
HyperFund presented itself to the public as a credible cryptocurrency investment opportunity. The platform enticed investors with promises of daily passive income ranging from half a percent to one percent, allegedly generated through cryptocurrency mining activities.
Federal prosecutors maintain that no such mining operation ever took place.
The fraudulent enterprise sold “membership packages” and assured participants their investments would multiply by two or three times the original amount. Starting in 2021, HyperFund implemented a freeze on all withdrawal requests.
The operation initially debuted under the HyperCapital brand name in January 2022, underwent a rebrand to HyperFund six months afterward, and ultimately ceased operations entirely by November 2022.
Burton’s Involvement and Celebrity Endorsements
Federal court filings reveal Burton actively promoted HyperFund from June 2020 through January 2022. He maintained control over multiple business entities that masqueraded as consulting firms while actually serving as conduits for investor funds flowing into the fraudulent scheme.
Burton personally enriched himself with over $7.8 million in proceeds from the operation.
He leveraged his public persona to attract new investors. Reports from Rolling Stone indicate Burton recruited high-profile celebrities such as actor Jamie Foxx and hip-hop artist Rick Ross to boost his credibility and reach.
Burton organized a cryptocurrency conference in Miami during 2021. The event featured appearances from Jordan Belfort, Akon, Tiffany Haddish, and Draymond Green.
Additional Defendants and Future Proceedings
Two additional individuals were indicted in January 2024 for their alleged involvement in the fraudulent operation. Sam Lee, a 35-year-old from Australia identified as one of HyperFund’s co-founders, has not been convicted of any charges.
Brenda Chunga, a Maryland resident, also faces allegations of conspiracy to commit securities fraud and wire fraud. Her sentencing hearing has been postponed several times and is currently rescheduled for June 29.
The HyperFund case stands as one of the most significant cryptocurrency fraud prosecutions in recent history. Authorities compare it to other notorious schemes like OneCoin, which defrauded investors of more than $4 billion, and BitConnect, responsible for approximately $2 billion in investor losses.
Burton’s sentencing hearing before US District Judge Richard D. Bennett is scheduled for July 23. He faces a potential maximum sentence of five years in federal custody.
Assistant US Attorney Christina A. Hoffman serves as the lead prosecutor on the case.
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