Rodney Burton, known as 'Bitcoin Rodney,' pleaded guilty on June 17 to a federal conspiracy charge for his role in promoting HyperFund, a cryptocurrency investment scheme that U.S. prosecutors say defrauded investors of approximately $1.8 billion globally. The U.S. Attorney's Office for the District of Maryland announced Burton, 56, admitted to conspiracy to operate an unlicensed money transmitting business after promoting HyperFund between June 2020 and January 2022. Federal authorities continue pursuing major cryptocurrency fraud cases involving large investor losses and misleading promises of high returns.
HyperFund Promised Daily Returns Up to 1% Before Blocking Withdrawals
HyperFund presented itself as a cryptocurrency investment platform offering daily rewards ranging from 0.5% to 1%, with the prospect of doubling or tripling initial capital. Federal prosecutors stated HyperFund "purported as a legitimate cryptocurrency investment platform, but in truth, was a global wire-fraud scheme that obtained $1.8 billion from victim-investors worldwide."
To support its claims, HyperFund asserted that it generated revenue through extensive cryptocurrency mining operations. Federal investigators allege that the company lacked the mining infrastructure it touted to investors. As the scheme became unsustainable, HyperFund began restricting and ultimately blocking investor withdrawals in 2021, leaving many participants unable to access their funds.
Burton Received $7.85 Million and Faces Five-Year Maximum Sentence
Federal authorities allege that Burton personally received at least $7.85 million in proceeds from the operation, including funds traced to HyperFund investors in Maryland. According to court filings, Burton promoted HyperFund and participated in providing unlicensed money transmission services that facilitated the scheme's operations.
The U.S. Attorney's Office described Burton as controlling "several companies that purported to offer consulting services but were in fact unlicensed money transmitting businesses." Burton faces a maximum sentence of five years in federal prison.
Burton Scheduled for Sentencing on July 23
Burton is scheduled to be sentenced on July 23. The case underscores regulators' and law enforcement agencies' continued scrutiny of cryptocurrency-related investment schemes that rely on unrealistic return promises and opaque business models.
FAQ
What did Rodney Burton plead guilty to on June 17?
Rodney Burton pleaded guilty to conspiracy to operate an unlicensed money transmitting business for his role in promoting HyperFund, a cryptocurrency investment scheme that U.S. prosecutors say defrauded investors of approximately $1.8 billion globally.
How much money did Burton receive from the HyperFund scheme?
Federal authorities allege that Burton personally received at least $7.85 million in proceeds from the operation, including funds traced to HyperFund investors in Maryland.
When is Burton scheduled to be sentenced?
Burton is scheduled to be sentenced on July 23 and faces a maximum sentence of five years in federal prison.
