HyperFund promoter Bitcoin Rodney admits role in $1.8B crypto fraud

A Florida man known as “Bitcoin Rodney” has pleaded guilty to his role in promoting HyperFund, a cryptocurrency investment scheme that U.S. authorities say defrauded investors of about $1.8 billion.

According to the U.S. Attorney’s Office for the District of Maryland, Rodney Burton admitted to helping operate an unlicensed money-transmitting business connected to HyperFund between June 2020 and January 2022.

Prosecutors said Burton played a major role in promoting the platform and received at least $7.8 million from the scheme during that period.

Court records show Burton controlled several companies that claimed to provide consulting services while helping attract investors to HyperFund. Authorities allege that some of the money raised from investors was used for his personal benefit.

Burton is scheduled to be sentenced on July 23 and could face up to five years in prison.

Federal investigators described HyperFund as a global crypto fraud operation that promised investors daily returns ranging from 0.5% to 1%. The company claimed the profits came from cryptocurrency mining activities, but prosecutors say those mining operations did not generate the revenue that was advertised.

Instead, authorities allege that money from new investors was used to pay earlier participants, a structure commonly associated with Ponzi-style schemes.

The U.S. Securities and Exchange Commission previously accused HyperFund of raising around $1.7 billion from investors worldwide by promoting what it described as highly profitable crypto mining investments.

The case against Burton is only one part of a larger investigation. HyperFund co-founder Sam Lee and another defendant, Brenda Chunga, are also facing separate legal proceedings related to the scheme.

Authorities say HyperFund was one of the largest cryptocurrency fraud cases in recent years, affecting investors across multiple countries before collapsing in late 2022.

The guilty plea marks another step in ongoing efforts by U.S. regulators and law enforcement agencies to hold individuals accountable for large-scale crypto investment frauds.