Rodney Burton, the Miami man known online as “Bitcoin Rodney,” has pleaded guilty to conspiracy to commit wire fraud in connection with the HyperFund crypto scheme, according to a new announcement from the U.S. Department of Justice. Burton, 56, was described by prosecutors as a central promoter of the operation, which they said caused about $1.8 billion in losses.
HyperFund was marketed as a DeFi mining opportunity
Prosecutors said the scheme ran from about June 2020 to May 2024. During that period, Burton and others promoted HyperFund and later used other names including HyperTech, HyperCapital, HyperVerse and HyperNation. The platform was presented as a legitimate DeFi investment program. Investors were told that buying memberships would generate passive returns of 0.5% to 1% per day, with payouts continuing until their original deposits doubled or even tripled.
The advertised source of those returns was large-scale crypto mining. Investigators said that claim was false. According to the DOJ, HyperFund did not operate any real mining business and instead functioned as a Ponzi scheme, using money from newer participants to pay earlier ones.
Withdrawals were blocked as the scheme unraveled
Authorities said the platform began blocking investor withdrawals in 2021 as the flow of funds broke down. Victims around the world were left with losses, including multiple residents of Maryland. The DOJ put the overall damage at about $1.8 billion.
Prosecutors also alleged that Burton spent investor funds on a lavish lifestyle, including luxury apartments, high-end cars and a private yacht. Under federal law, the single count to which he pleaded guilty carries a maximum sentence of 20 years in prison. The DOJ announcement also noted that a prior superseding indictment included multiple wire fraud charges, seven money laundering counts and an allegation tied to operating an unlicensed money transmitting business.
Federal agencies worked the case as one founder remains at large
The case was investigated by several federal agencies, including IRS Criminal Investigation and Homeland Security Investigations. Another key promoter, Brenda Chunga, had already pleaded guilty. HyperFund co-founder Sam Lee remains a fugitive, according to the DOJ.
The department said the public update also serves as a warning to the market. In this case, promises of risk-free returns and high passive income were used to draw in investors, while the business activity presented to support those claims did not exist.