Miami man pleads guilty to promoting HyperFund scam, involving $1.8 billion in investor funds

Odaily Planet Daily News Rodney "Bitcoin Rodney" Burton, a Miami, Florida resident, has pleaded guilty in federal court to participating in a cryptocurrency fraud scheme related to HyperFund, with the case involving approximately $1.8 billion.

According to the U.S. Attorney's Office for the District of Maryland, Burton pleaded guilty to "conspiracy to operate an unlicensed money transmitting business." Between June 2020 and January 2022, he participated in promoting this Ponzi-structured project and profited approximately $7.85 million from it.

Law enforcement officials noted that HyperFund attracted investors with promises of high returns of "0.5% to 1% daily," but there were no actual cryptocurrency mining operations or sustainable sources of revenue. The funds essentially came from new investors, forming a typical Ponzi scheme structure, and it began restricting withdrawals in 2021.

The U.S. Department of Justice stated that the project raised funds from investors globally and was used for promotion and fund transfers during its operation, constituting a large-scale cross-border wire fraud network.

Burton faces a maximum of 5 years in federal prison, with a sentencing hearing scheduled for July 23. Law enforcement agencies stated that the case was jointly investigated by the IRS Criminal Investigation Division and Homeland Security Investigations. (U.S. Department of Justice)