Key Takeaways
- HyperFund allegedly collected $1.8 billion from investors across multiple countries worldwide.
- Burton received at least $7.85 million while helping facilitate the scheme, prosecutors said.
- Authorities continue pursuing major crypto fraud cases involving large investor losses and misleading promises.
HyperFund Drew $1.8 Billion From Investors Worldwide
Rodney Burton, also known as “ Bitcoin Rodney,” has pleaded guilty to a federal conspiracy charge stemming from 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 on June 17 that Burton, 56, pleaded guilty to conspiracy to operate an unlicensed money transmitting business. According to court filings, Burton promoted HyperFund between June 2020 and January 2022 and participated in providing unlicensed money transmission services that facilitated the scheme’s operations.
Federal prosecutors stated:
“HyperFund, which 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.”
HyperFund presented itself as a cryptocurrency investment platform offering unusually high returns. Promotional materials promised investors daily rewards ranging from 0.5% to 1%, with the prospect of doubling or even tripling their initial capital. Prosecutors contend that these representations were materially false and designed to attract new investors into what authorities describe as a large-scale international fraud.
To support its claims, HyperFund asserted that it generated revenue through extensive cryptocurrency mining operations. Federal investigators, however, allege that the company lacked the mining infrastructure it touted to investors. As the scheme became increasingly unsustainable, HyperFund reportedly began restricting and ultimately blocking investor withdrawals in 2021, leaving many participants unable to access their funds.
Prosecutors Say Burton Received Nearly $7.9 Million
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. 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.
The U.S. Attorney’s Office described:
“Burton controlled 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. He is scheduled to be sentenced on July 23.