U.S. Department of Justice has disclosed that Rodney Burton, nicknamed "Bitcoin Rodney," has admitted to involvement in unlicensed money transfer operations linked to HyperFund. Prosecutors allege that the platform raised approximately $1.8 billion from global investors under the guise of high-yield cryptocurrency investments.
Burton has pleaded guilty.
The Maryland U.S. Attorney's Office stated that Burton admitted to assisting in the provision of unlicensed money transfer services and participating in the promotion of HyperFund. Prosecutors stated that his involvement in these operations occurred between June 2020 and January 2022.
Court documents show that Burton controlled multiple companies that claimed to provide consulting services but actually helped market HyperFund to investors. Federal prosecutors also allege that he received at least $7.8 million from the project during his involvement and used some of the investor funds for personal purposes.
The platform is accused of raising funds under the guise of cryptocurrency mining.
Prosecutors allege that HyperFund promised investors daily returns of 0.5% to 1%, claiming the profits came from cryptocurrency mining. However, U.S. law enforcement agencies believe the platform did not generate the mining revenue it advertised.
In a civil lawsuit filed in January 2024, the U.S. Securities and Exchange Commission alleged that HyperFund raised approximately $1.7 billion from investors worldwide. Federal prosecutors estimated the case to be worth approximately $1.8 billion. Regulators argued that the platform's practice of paying returns to early participants using funds from new investors exhibited characteristics of a Ponzi scheme.
The cases against the other defendants are still ongoing.
Maryland federal prosecutors indicted Sam Lee and Brenda Chunga in January 2024, charging them with conspiracy to commit securities fraud and wire fraud related to HyperFund. Public information indicates that Lee is identified as one of the co-founders of HyperFund and has been indicted but not yet convicted.
Burton's sentencing hearing is scheduled for July 23. He faces a maximum sentence of five years in prison for conspiring to operate an unlicensed money transfer business. The sentencing date for another defendant, Chunga, is currently set for June 29.
Public documents also show that the project was renamed several times during its existence and collapsed in November 2022.
