The U.S. Department of Justice disclosed that Rodney Burton, known as "Bitcoin Rodney," has admitted to participating in an unlicensed money transmission business linked to HyperFund. Prosecutors stated that the platform raised approximately $1.8 billion from global investors under the guise of high-yield cryptocurrency investments.
Burton has pleaded guilty.
The U.S. Attorney’s Office for Maryland stated that Burton admitted to assisting in providing unlicensed money transmission services and participating in the promotion of HyperFund. Prosecutors said his involvement in the operations occurred from June 2020 to January 2022.
Court documents show that Burton controlled multiple companies that publicly claimed to offer consulting services but actually assisted in marketing HyperFund to investors. Federal prosecutors also alleged that, during his involvement, he received at least $7.8 million from the project and used portions of investor funds for personal purposes.
The platform has been accused of raising funds under the guise of mining.
Prosecutors stated that HyperFund promised investors daily returns of 0.5% to 1%, claiming the earnings came from cryptocurrency mining operations. However, U.S. law enforcement believes the platform did not generate the mining income it advertised.
In a civil lawsuit filed by the U.S. Securities and Exchange Commission in January 2024, HyperFund raised approximately $1.7 billion from global investors. Federal prosecutors estimated the scale of the case at around $1.8 billion. Regulators believe the platform paid returns to early participants using funds from new investors, operating in a manner characteristic of a Ponzi scheme.
Other defendant cases are still proceeding.
The U.S. Attorney’s Office for Maryland indicted Sam Lee and Brenda Chunga in January 2024, charging them with conspiracy to commit securities fraud and wire fraud related to HyperFund. Public records indicate that Lee is identified as one of HyperFund’s co-founders; he has been indicted but not yet convicted.
Burton’s sentencing hearing is scheduled for July 23. He faces up to five years in prison for conspiring to operate an unlicensed money transmitting business. The sentencing date for another defendant, Chunga, is currently set for June 29.
The public documents also show that the project underwent multiple name changes during its existence and collapsed in November 2022.