HyperFund raised $1.8 billion from investors around the world
Rodney Burton, also known as ” Bitcoin Rodney,” pleaded guilty to a federal conspiracy charge stemming from his role in promoting HyperFund, a cryptocurrency investment scheme that U.S. prosecutors say defrauded investors of approximately $1.8 billion worldwide.
The U.S. Attorney’s Office for the District of Maryland announced June 17 that Burton, 56, pleaded guilty to conspiracy to operate an unlicensed money transmitting business. According to court documents, Burton promoted HyperFund between June 2020 and January 2022 and participated in providing unlicensed money transfer services that facilitated the program’s operations.
Federal prosecutors said:
“HyperFund, which presented itself as a legitimate cryptocurrency investment platform, but in reality was a global wire fraud scheme that obtained $1.8 billion from victimized investors around the world.”
HyperFund presented itself as a cryptocurrency investment platform offering unusually high returns. Promotional materials promised investors daily rewards ranging from 0.5% to 1%, with the possibility of doubling or even tripling their initial capital. Prosecutors say the statements were materially false and designed to attract new investors in what authorities describe as a large-scale international fraud.
To support its claims, HyperFund claimed to have generated revenue through extensive cryptocurrency mining operations. Federal investigators, however, say the company lacked the mining infrastructure it touted to investors. As the system became increasingly unsustainable, HyperFund reportedly began restricting and ultimately blocking investor withdrawals in 2021, leaving many participants unable to access their funds.
Prosecutors say Burton received nearly $7.9 million
Federal authorities say Burton personally received at least $7.85 million in proceeds from the operation, including funds allocated to HyperFund investors in Maryland. The case highlights continued scrutiny by regulators and law enforcement of cryptocurrency-related investment programs that rely on unrealistic return promises and opaque business models.
The U.S. Attorney’s Office described:
“Burton controlled several companies that claimed to offer advisory services but were in fact unlicensed money transfer businesses.”
Burton faces a maximum sentence of five years in federal prison. He is scheduled to be sentenced on July 23.
