Rodney Burton, the Miami-based crypto promoter who built an online following under the name "Bitcoin Rodney," pleaded guilty in federal court on June 16 over his role in the $1.8 billion Hype
Rodney Burton, the Miami-based crypto promoter who built an online following under the name "Bitcoin Rodney," pleaded guilty in federal court on June 16 over his role in the $1.8 billion HyperFund cryptocurrency fraud.The 56-year-old admitted to one count of conspiracy to operate an unlicensed money transmitting business.
HyperFund, which also operated under the names HyperVerse, HyperTech, and HyperCapital, promised investors daily passive returns of 0.5% to 1%, supposedly backed by large-scale cryptocurrency mining operations that did not exist.Burton promoted HyperFund between June 2020 and January 2022 and participated in providing unlicensed money transmission services that facilitated the scheme's operations.Under the plea agreement, he admitted to running companies disguised as consulting firms but operating as unregistered money transmitters to launder HyperFund investor funds, including victims in Maryland. By 2021, the platform had stopped allowing investors to withdraw their funds.
Prosecutors say Burton personally pocketed at least $7.85 million from the operation.The expanded indictment alleged he spent investor money on luxury condos, sports cars, and a yacht.Burton was arrested by federal authorities in January 2024 at Miami International Airport, reportedly carrying a one-way ticket to the United Arab Emirates. A federal judge denied bail, calling him an "extreme flight risk," and he has remained in custody since then.
Burton is not the only figure facing consequences. Another promoter, Brenda Chunga, previously pleaded guilty for her role in the operation.The platform's alleged co-founder, Australian entrepreneur Xue "Sam" Lee, was indicted in January 2024 on conspiracy to commit securities and wire fraud, and remains at large.
The guilty plea covers the conspiracy count alone, which carries a maximum sentence of five years. Sentencing is set for July 23 before U.S. District Judge Richard D. Bennett.Burton's plea marks the latest development in one of the largest cryptocurrency fraud cases pursued by federal prosecutors and highlights the growing legal risks facing individuals who promoted high-yield crypto projects during the industry's last major bull market.
Sources:U.S. Department of Justice press release on Burton guilty pleaBeInCrypto: Bitcoin Rodney Pleads Guilty in Connection With $1.8 Billion HyperFund FraudBitcoin.com News: HyperFund Promoter Bitcoin Rodney Pleads Guilty in $1.8 Billion Crypto Scam
