Florida man pleads guilty in $1.8B HyperFund crypto fraud

Rodney ‘Bitcoin Rodney’ Burton, 56, pleaded guilty in federal court to one count of conspiracy to operate an unlicensed money transmitting business in connection with HyperFund, a global crypto fraud that prosecutors say raised about $1.8 billion.

The U.S. Attorney’s Office for the District of Maryland announced the plea and identified investigative partners as IRS Criminal Investigation in Washington and Homeland Security Investigations in New York. Burton entered the plea after prosecutors traced his role in promoting the platform and moving investor funds through channels prosecutors say were not licensed.

Prosecutors allege Burton promoted HyperFund from June 2020 through January 2022. HyperFund marketed itself as a crypto investment and mining operation and promised daily passive returns of roughly 0.5% to 1%, claims investigators found were unsupported because the platform lacked the mining revenue it asserted. The operation rebranded several times, launching as HyperCapital in January 2022, relaunching as HyperFund six months later and collapsing in November 2022.

According to Burton’s plea agreement, he controlled several companies that billed the scheme for consulting services and personally received at least $7.8 million in proceeds. Federal authorities have described HyperFund as one of the largest crypto frauds in recent years, affecting thousands of investors worldwide and drawing parallels to other large Ponzi-style schemes.

Burton faces a maximum sentence of five years in federal prison for the unlicensed money transmitting charge. Sentencing is scheduled for July 23. The case was prosecuted by the U.S. Attorney’s Office for the District of Maryland with investigative work by IRS Criminal Investigation, Washington, and Homeland Security Investigations, New York.

Federal prosecutors previously charged two others in connection with HyperFund in January 2024. Australian national Sam Lee, identified as an alleged co-founder, faces charges including conspiracy to commit securities fraud and wire fraud. Brenda Chunga of Maryland also was charged; her sentencing has been delayed and is now scheduled for June 29.

Prosecutors say HyperFund relied on a global network of promoters and affiliates to recruit investors and to channel funds through unlicensed channels, conduct that formed the basis for charges against Burton and other defendants.