Key Points
- Rodney Burton, known as “Bitcoin Rodney,” admitted guilt for operating an illegal money transmission business linked to HyperFund
- The HyperFund operation defrauded global investors of $1.8 billion by promising 0.5%–1% daily profits
- Burton collected more than $7.8 million personally from the fraudulent scheme
- Investor withdrawals were frozen before the platform’s complete failure in November 2022
- He could receive a maximum sentence of five years in federal prison on July 23
A Miami resident who went by the online alias “Bitcoin Rodney” has entered a guilty plea in federal court for his involvement in a massive $1.8 billion cryptocurrency scam.
Rodney Burton, 56, confessed to participating in a conspiracy to run an unauthorized money transmission enterprise that facilitated the promotion of HyperFund, which authorities have characterized as an extensive wire fraud scheme.
The announcement came from Kelly O. Hayes, the US Attorney for Maryland’s District, working in conjunction with investigators from the IRS Criminal Investigation division and Homeland Security Investigations.
The HyperFund Deception
HyperFund presented itself as a credible cryptocurrency investment platform. The operation lured investors with promises of 0.5% to 1% in passive daily returns, allegedly generated through cryptocurrency mining activities.
According to federal prosecutors, no such mining operations were ever conducted.
The scheme operated by selling “membership packages” while assuring participants their investments would multiply two or three times over time. Starting in 2021, HyperFund began blocking withdrawal requests altogether.
Originally established as HyperCapital in January 2022, the operation rebranded itself as HyperFund within six months before completely imploding in November 2022.
Burton’s Activities and High-Profile Endorsements
Federal court filings reveal Burton actively promoted HyperFund from June 2020 through January 2022. He managed multiple companies that masqueraded as consulting businesses while actually channeling investor funds through the fraudulent operation.
Burton personally acquired over $7.8 million from the scheme’s proceeds.
He leveraged his public persona to attract new investors. Reports from Rolling Stone indicate Burton recruited high-profile figures such as actor Jamie Foxx and rapper Rick Ross to boost his credibility and reach.
In 2021, he organized a cryptocurrency conference in Miami that drew notable personalities including Jordan Belfort, Akon, Tiffany Haddish, and Draymond Green.
Additional Defendants and Upcoming Proceedings
Two additional individuals received charges in January 2024 related to this scheme. Sam Lee, a 35-year-old from Australia identified as HyperFund’s co-founder, has not been convicted of any charges.
Brenda Chunga from Maryland is facing accusations of conspiring to commit securities fraud and wire fraud. Her sentencing hearing has been postponed several times and is currently scheduled for June 29.
HyperFund stands as one of the most significant cryptocurrency fraud operations in history. The case bears resemblance to OneCoin, which defrauded investors of more than $4 billion, and BitConnect, responsible for approximately $2 billion in investor losses.
Burton’s sentencing hearing is scheduled for July 23 before US District Judge Richard D. Bennett. He faces a potential maximum sentence of five years in federal custody.
Assistant US Attorney Christina A. Hoffman is handling the prosecution.
