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- Rodney Burton pleaded guilty for his role in promoting the HyperFund crypto scheme.
- Prosecutors allege HyperFund used false mining claims to attract investor funds.
- The case highlights ongoing global action against cryptocurrency fraud.
A Florida resident has admitted his role in promoting one of the largest alleged cryptocurrency fraud schemes in recent years, bringing a major development in the federal investigation into HyperFund. Rodney “Bitcoin Rodney” Burton, 56, pleaded guilty to conspiracy to operate an unlicensed money-transmitting business linked to the platform, which prosecutors say defrauded investors worldwide.
The guilty plea marks another step in the government’s crackdown on large-scale crypto schemes that attracted thousands of victims with promises of unrealistic returns. Authorities allege that HyperFund used misleading claims about cryptocurrency mining profits to attract funds from investors.
HyperFund Allegedly Promised Unrealistic Crypto Returns
According to prosecutors, HyperFund operated as a global wire-fraud scheme that marketed itself as a profitable crypto investment opportunity. Investors were reportedly told they could earn daily passive income ranging between 0.5% and 1%, with the platform claiming these payments came from cryptocurrency mining operations.
Federal investigators say those mining revenues did not exist as promoted. Instead, prosecutors allege the system relied on incoming investor funds to support the operation and reward participants, a structure commonly associated with Ponzi-style schemes.
The collapse of HyperFund has drawn comparisons to other major cryptocurrency fraud cases, including OneCoin and BitConnect, which caused billions of dollars in reported losses.
Burton Received Millions From the Operation, Prosecutors Say
The US Attorney’s Office for the District of Maryland said Burton promoted HyperFund between June 2020 and January 2022 while using multiple companies that presented themselves as consulting businesses.
Authorities claim Burton personally received at least $7.8 million connected to the operation. The case involved investigators from the Internal Revenue Service Criminal Investigation and Homeland Security Investigations.
Burton now faces a maximum sentence of five years in federal prison for conspiracy to operate an unlicensed money-transmitting business. His sentencing is scheduled for July 23.
Other HyperFund Figures Remain Under Legal Pressure
The federal case has also involved other individuals connected to HyperFund. In January 2024, prosecutors charged Australian national Sam Lee and Maryland resident Brenda Chunga over allegations involving securities fraud and wire fraud.
Chunga’s sentencing has been delayed several times and is currently set for June 29. Lee, who prosecutors identify as an alleged co-founder of HyperFund, has not been convicted.
HyperFund began as HyperCapital in early 2022 before undergoing rebrands. The project eventually collapsed in November 2022, leaving investors facing major losses.
Also Read: Florida Launches Major Probe Into OpenAI: Is ChatGPT a Safety Risk?
The Burton guilty plea highlights continued regulatory and legal action against fraudulent crypto investment operations. As authorities pursue those involved, the HyperFund case serves as a reminder of the risks surrounding platforms that promise guaranteed or unusually high cryptocurrency returns.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
