Miami’s ‘Bitcoin Rodney’ pleads guilty in $1.8B HyperFund fraud

Rodney Burton, 56, a Miami resident who also maintained a home in Prince George’s County, Maryland, pleaded guilty in federal court in Baltimore to conspiring to run an unlicensed money-transmitting business tied to the $1.8 billion HyperFund cryptocurrency scheme. Federal prosecutors say Burton personally received more than $7.8 million. He faces a maximum of five years in prison and is scheduled to be sentenced on July 23 before U.S. District Judge Richard D. Bennett.

Court documents state Burton promoted HyperFund and operated a network of companies that presented themselves as consulting firms but acted as unlicensed money transmitters. Federal charging papers say the conspiracy ran from June 2020 through January 2022 and involved processing and moving funds for HyperFund customers, including investors in Maryland.

Prosecutors describe HyperFund as a global operation that marketed ‘memberships’ promising daily returns of 0.5% to 1% until an investor’s initial stake doubled or tripled. The platform claimed those payouts came in part from revenue generated by large cryptocurrency-mining operations that federal authorities say did not exist. By 2021, HyperFund had begun freezing investor withdrawals, according to the filings.

Authorities allege Burton enriched himself by drawing payments from the operation and routing investor money through his companies to obscure its movement. The filings identify payments to Burton totaling more than $7.8 million and indicate some proceeds came from victims in Maryland.

Court filings also describe promotional efforts that increased HyperFund’s public profile. Burton is accused of using public appearances and celebrity endorsements to attract investors, enlisting entertainers such as Jamie Foxx and Rick Ross and hosting a 2021 Miami conference that featured figures including Draymond Green, Jordan Belfort, Akon and Tiffany Haddish.

The criminal plea resolves the unlicensed money-transmitting conspiracy charge but does not address other potential civil or regulatory claims tied to HyperFund. Assistant U.S. Attorney Christina A. Hoffman is handling the prosecution. Sentencing is set for July 23, when the court will determine Burton’s sentence under federal guidelines and statutory limits.