A Miami crypto promoter known as Rodney “Bitcoin Rodney” Burton pleaded guilty in federal court for his role in the $1.8 billion HyperFund fraud scheme that operated between 2020 and 2022.
Burton admitted under a plea agreement that he conspired to provide unlicensed money-transmitting services while promoting HyperFund and routed investor funds through entities that were presented as consulting firms but functioned as payment conduits. He received at least $7,851,711 in proceeds linked to the operation, the U.S. Attorney’s Office for the District of Maryland said in a statement on Wednesday.
According to the statement, HyperFund's promotional materials claimed investors who purchased "memberships" would receive between 0.5% and 1% daily in passive rewards until the company either doubled or tripled their initial investment.
The platform also cited revenue from large-scale crypto mining operations to justify the payouts, despite prosecutors saying no such operations existed. Withdrawals were later blocked beginning in 2021 as the scheme progressed.
Burton now faces a statutory maximum penalty of five years in federal prison for the conspiracy charge, with sentencing scheduled for July 23 before U.S. District Judge Richard D. Bennett.
