Burton admits role in HyperFund promotion
Odaily reported that Rodney “Bitcoin Rodney” Burton, a resident of Miami, Florida, has pleaded guilty in federal court for his participation in a cryptocurrency fraud scheme connected to HyperFund. According to federal prosecutors in Maryland, the case involved approximately $1.8 billion, and Burton admitted to the charge of conspiracy to operate an unlicensed money transmitting business.
Prosecutors said Burton took part in promoting the project from June 2020 to January 2022. During that period, he earned about $7.85 million from the activity. Law enforcement authorities described HyperFund as a Ponzi-style structure, promoted to investors through claims of high returns tied to crypto-related activity.
High-return promises and withdrawal limits
Authorities stated that HyperFund attracted investors with promises of daily returns ranging from 0.5% to 1%. However, investigators said the project did not have real crypto mining operations or a sustainable source of revenue. Instead, payments to participants were essentially funded by money coming from new investors, fitting the structure of a typical investment fraud scheme.
The operation began restricting withdrawals in 2021. The U.S. Department of Justice said HyperFund raised funds from investors around the world and was used in the course of promotion and fund transfers, forming a large-scale cross-border wire fraud network. Burton faces a maximum sentence of five years in federal prison, and his sentencing hearing is scheduled for July 23. Law enforcement agencies said the case was investigated jointly by IRS Criminal Investigation and Homeland Security Investigations.