Florida’s ‘Bitcoin Rodney’ Admits Guilt in Massive $1.8B Crypto Ponzi Scheme

Key Takeaways

• Rodney Burton, known as “Bitcoin Rodney,” admitted guilt for operating an illegal money transmission business linked to HyperFund
• The HyperFund operation defrauded investors of $1.8 billion worldwide by falsely promising 0.5%–1% daily profits
• Burton earned more than $7.8 million from his involvement in the fraudulent scheme
• The platform shut down in November 2022 after blocking user withdrawals
• Burton could receive a maximum sentence of five years in federal prison on July 23

A Miami resident who went by the alias “Bitcoin Rodney” online has entered a guilty plea in federal court for his participation in a cryptocurrency fraud operation worth $1.8 billion.

Rodney Burton, 56, confessed to conspiring to run an unlicensed money transmission service that facilitated the promotion of HyperFund, which federal prosecutors characterize as a massive wire fraud enterprise.

Kelly O. Hayes, US Attorney for the District of Maryland, announced the guilty plea in coordination with investigators from IRS Criminal Investigation and Homeland Security Investigations.

The HyperFund Scam Explained

HyperFund presented itself as a trustworthy cryptocurrency investment platform. The operation enticed investors with promises of 0.5% to 1% daily passive income, allegedly generated through cryptocurrency mining activities.

Federal authorities say no such mining operation ever took place.

The scheme sold tiered “memberships” while assuring participants their contributions would multiply two or three times over a set period. Starting in 2021, HyperFund began halting all withdrawal requests.

The operation first appeared as HyperCapital in January 2022, underwent a rebrand to HyperFund six months afterward, and ultimately failed in November 2022.

How Burton Operated and His Star-Studded Network

Federal court filings reveal Burton actively marketed HyperFund from June 2020 through January 2022. He managed multiple business entities that masqueraded as consulting firms while actually channeling investor funds into the fraudulent scheme.

Burton collected over $7.8 million in personal profits from the operation.

He leveraged his public persona to attract new investors. Reports from Rolling Stone indicate Burton recruited high-profile figures such as actor Jamie Foxx and rapper Rick Ross to boost his credibility.

In 2021, he organized a cryptocurrency convention in Miami. Notable attendees included Jordan Belfort, Akon, Tiffany Haddish, and Draymond Green.

Additional Defendants and Legal Proceedings

Two additional individuals were indicted in January 2024 for their alleged involvement in the fraud. Sam Lee, a 35-year-old Australian identified as a HyperFund co-founder, has not been convicted of any charges.

Brenda Chunga from Maryland also faces accusations of conspiring to commit securities fraud and wire fraud. Her sentencing hearing has been postponed several times and is currently scheduled for June 29.

HyperFund represents one of the most significant cryptocurrency fraud operations in recent history. The case shares similarities with OneCoin, which defrauded investors of more than $4 billion, and BitConnect, which resulted in approximately $2 billion in investor losses.

Burton’s sentencing hearing is scheduled for July 23 before US District Judge Richard D. Bennett. He faces up to five years in federal prison.

Assistant US Attorney Christina A. Hoffman is handling the prosecution.