Florida man pleads guilty for promoting $1.8B ‘HyperFund’ crypto fraud

David Collins

12 hours ago7 min read

A prominent Florida-based cryptocurrency promoter, known to his online followers as “Bitcoin Rodney,” has pleaded guilty to charges connected with his role in promoting the colossal $1. 8 billion HyperFund global fraud scheme.Rodney Burton, 54, admitted in a Maryland federal court to one count of conspiracy to operate an unlicensed money transmitting business. The plea marks a significant development in the ongoing effort by U.S. authorities to dismantle the network behind one of the largest crypto-related pyramid schemes to date.Burton now faces a maximum sentence of five years in federal prison for his involvement. The case revolves around HyperFund, a sprawling enterprise that presented itself as a legitimate crypto asset investment platform.Beginning as early as 2020, the organization, also known as HyperTech, lured investors from around the world with promises of extraordinary and passive returns, claiming they were generated from large-scale crypto mining operations and other lucrative ventures. Promoters for the fund boasted of daily rewards ranging from 0.5% to 1%, returns that would be virtually impossible to sustain through legitimate market activities. In reality, according to prosecutors, HyperFund had no real source of revenue and operated as a classic Ponzi scheme, using money from new investors to pay off earlier ones, all while siphoning funds to its unseen architects.Rodney Burton was not one of the masterminds behind the scheme, but he was a key figure in its public-facing promotional machine. Leveraging his “Bitcoin Rodney” brand, he cultivated an image of a self-made crypto millionaire, using his platform to host lavish events and online webinars to convince potential victims of HyperFund’s legitimacy.Prosecutors detailed how Burton created promotional videos and personally endorsed the platform, effectively acting as an unlicensed broker. He received nearly $7.9 million in illicit proceeds, which he laundered through a series of transactions involving Tether (USDT), cash, and transfers to international bank accounts. His guilty plea specifically relates to this movement of funds, acknowledging that he operated a business to transmit these criminally derived assets without the necessary state or federal licenses.The Department of Justice's investigation has revealed a complex web of promoters who worked to keep the scheme afloat. Burton's plea follows that of Brenda Chunga, a Maryland-based promoter known as “Bitcoin Beautee,” who pleaded guilty last year to conspiracy to commit wire fraud for her role in the same scheme.While promoters like Burton and Chunga face justice, the alleged architects of HyperFund, Sam Lee and Zijing “Ryan” Xu, remain at large. The U.S. Securities and Exchange Commission has also filed parallel civil charges against both Lee and Chunga, seeking disgorgement of ill-gotten gains and civil penalties.The collapse of HyperFund in 2022 left a trail of financial devastation, with investors worldwide losing access to their funds as the platform abruptly blocked withdrawals. Burton’s case underscores a persistent and dangerous element within the digital asset ecosystem: the role of social media influencers in amplifying fraudulent schemes.By presenting an aspirational lifestyle allegedly funded by their investment prowess, these promoters lend an air of credibility to operations that are, at their core, designed to defraud the public. The plea serves as a potent warning to others who might consider promoting unregistered securities or operating outside financial regulations, highlighting that federal authorities are increasingly focused on holding all participants in such schemes accountable, not just the founders.As Burton awaits sentencing, the broader legal saga surrounding HyperFund is far from over. The pursuit of Lee and Xu continues, and the painstaking process of tracing the $1.8 billion in investor funds is ongoing. For the countless victims of the scheme, the prospect of recovering their losses remains slim, a grim reality in the aftermath of most large-scale Ponzi collapses. The case is a stark reminder of the high-stakes risks involved in the less regulated corners of the cryptocurrency market and reinforces the timeless investment advice: if an opportunity sounds too good to be true, it almost certainly is.

#editorial picks

#Crypto Fraud

#Ponzi Scheme

#HyperFund

#DOJ

#Regulation

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