Rodney Burton, known as “Bitcoin Rodney,” has pleaded guilty to a conspiracy charge linked to HyperFund. U.S. prosecutors described the crypto platform as a global wire-fraud scheme that collected about $1.8 billion from investors.
The 56-year-old Florida resident admitted to conspiring to operate an unlicensed money transmitting business. His sentencing is scheduled for July 23, and he faces up to five years in prison.
Rodney “Bitcoin Rodney” Burton pleaded guilty to operating an unlicensed money transmitting business linked to HyperFund, a crypto scheme that collected about $1.8 billion from investors. Prosecutors said he received at least $7.85 million and now faces up to five years in prison.
Burton Admits Role in HyperFund Promotion
The U.S. Attorney’s Office for the District of Maryland announced Burton’s guilty plea on June 17. According to the plea agreement, he promoted HyperFund and helped provide unlicensed money transmission services from June 2020 to January 2022.
Prosecutors said Burton controlled several companies that claimed to provide consulting services. Authorities stated that those businesses instead operated as unlicensed money transmitters connected to HyperFund. Burton received at least $7,851,711 from the operation, including money linked to investors in Maryland.
Officials said HyperFund “purported to be a legitimate cryptocurrency investment platform” but was “in truth” a global wire-fraud operation. The wording reflects the government’s account of the platform and the conduct described in Burton’s plea agreement.
Meanwhile, Burton pleaded guilty to the money transmission conspiracy charge rather than a separate wire-fraud count. The court will determine his sentence after reviewing the agreement, federal guidelines and other information submitted before the hearing.
Prosecutors Question HyperFund’s Return Claims
HyperFund marketed membership packages that allegedly offered daily passive rewards of between 0.5% and 1%. Promotional claims suggested that members could double or triple their starting investment through the platform.
The company also claimed that large cryptocurrency mining operations produced revenue for the promised payments. Prosecutors disputed that account, stating that “HyperFund did not have such operations.” Authorities said the platform used the mining story to support return promises made to investors.
According to federal records, HyperFund began blocking withdrawals in 2021. Investors then faced limits when trying to recover funds held through the platform. The operation later used names including HyperVerse, HyperCapital and HyperNation.
The Securities and Exchange Commission filed a related civil case in January 2024. It alleged that HyperFund raised more than $1.7 billion through a crypto asset pyramid scheme. The criminal case has placed the amount obtained from investors at about $1.8 billion.
Other HyperFund Cases Remain Active
Federal authorities previously charged HyperFund co-founder Sam Lee with conspiracy to commit securities fraud and wire fraud. Lee has been charged, but the allegations against him have not resulted in a conviction. He retains the presumption of innocence unless proven guilty in court.
Brenda Chunga, another promoter known as “Bitcoin Beautee,” pleaded guilty in a related criminal case. Court records list her sentencing for June 29. The SEC also brought civil claims against Lee and Chunga over their roles in the platform.
IRS Criminal Investigation and Homeland Security Investigations worked on Burton’s case. Assistant U.S. Attorney Christina A. Hoffman is prosecuting the matter for the District of Maryland.
Burton is due to appear before U.S. District Judge Richard D. Bennett at 11 a.m. on July 23. The five-year term is the statutory maximum, not a confirmed sentence. The judge will issue the final criminal punishment after considering the case record and sentencing rules.
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