Rodney Burton admits role in $1.8 billion HyperFund crypto scam

Rodney Burton, known online as “Bitcoin Rodney,” has pleaded guilty to conspiring to conduct unlicensed money transmission in connection with the $1.8 billion HyperFund cryptocurrency fraud scheme. According to court documents submitted to a federal court in Florida, Burton admitted to helping promote what prosecutors call a vast electronic fraud operation.

Focus on the HyperFund investigation

U.S. Attorney for the District of Maryland, Kelly O. Hayes, announced Burton’s guilty plea in coordination with IRS Criminal Investigation and Homeland Security Investigations. Authorities say HyperFund promised investors daily returns of 0.5% to 1%, supposedly generated from cryptocurrency mining activities.

Investigators confirmed that the alleged mining operations never actually took place. According to the case files, the organization sold tiered membership packages, assuring participants that their investments would double or triple over time. The company began suspending withdrawal requests as early as 2021.

The group first operated under the name HyperCapital before rebranding as HyperFund, eventually collapsing in November 2022. The shutdown became evident when users reported they could no longer withdraw their funds from the platform.

Burton’s involvement and gains

Court records show that Burton actively promoted HyperFund between June 2020 and January 2022. Prosecutors allege that he managed several business entities resembling consulting companies and helped funnel investor funds into the scheme through these firms.

The investigation notes that Burton leveraged his public persona to attract new participants to HyperFund. Some associations with well-known figures helped lend the impression of credibility to the scheme, although their legal status in the case remains unspecified.

Other defendants and court proceedings

Other named defendants include Sam Lee, a 35-year-old Australian identified as a co-founder of HyperFund. While charges have been filed against Lee, no conviction has been issued so far. Brenda Chunga, from Maryland, is accused of conspiring to commit securities and wire fraud.

Chunga’s court hearings have been postponed several times, most recently rescheduled for June 29. Burton’s sentencing is set for July 23 before U.S. District Judge Richard D. Bennett, and he faces up to five years in federal prison.

The HyperFund case is one of the largest cryptocurrency fraud investigations in recent years. The indictment draws parallels to previous high-profile cases such as OneCoin and BitConnect. Assistant U.S. Attorney Christina A. Hoffman is leading the prosecution for this case.

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