Rodney Burton has pleaded guilty in the HyperFund criminal case, according to U.S. Attorney for the District of Maryland Kelly O. Hayes. The case is being handled with support from IRS Criminal Investigation and Homeland Security Investigations. Prosecutors said HyperFund told investors it could generate daily returns of 0.5% to 1% through cryptocurrency mining, but investigators found no real mining activity behind those claims.
Investigators say the mining story had no basis
Federal authorities said the supposed mining operation never took place. Court materials describe a structure built around tiered membership packages, with participants told their contributions would double or even triple over time. By 2021, the company had already started suspending withdrawal requests. The group first operated as HyperCapital, later rebranded to HyperFund, and ultimately collapsed in November 2022, when users reported that they could no longer withdraw funds from the platform.
Burton allegedly promoted HyperFund for more than a year
Court records show Burton actively promoted HyperFund from June 2020 to January 2022. Prosecutors allege that he controlled several business entities presented as consulting firms and used those companies to help channel investor money into the scheme. Documents in the case also state that Burton personally earned more than $7.8 million from HyperFund-related activity.
Investigators said Burton used his public profile to attract new participants. The case files add that links to well-known figures helped create an impression of legitimacy, though the legal standing of those individuals in this case was not specified.
Other defendants and upcoming court dates
Other defendants named in the case include Sam Lee, a 35-year-old Australian identified as a co-founder of HyperFund. Charges have been filed against Lee, but no conviction has been issued at this stage. Another defendant, Brenda Chunga of Maryland, is accused of conspiracy to commit securities fraud and wire fraud.
Chunga’s court hearings have been delayed several times, most recently moved to June 29. Burton is scheduled to be sentenced on July 23 before U.S. District Judge Richard D. Bennett, and he faces up to five years in federal prison. The prosecution is being led by Assistant U.S. Attorney Christina A. Hoffman. Federal authorities described the HyperFund matter as one of the largest cryptocurrency fraud investigations in recent years and drew comparisons with earlier cases including OneCoin and BitConnect.