Miami man pleads guilty to promoting HyperFund scheme, involving up to $1.8 billion

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

According to U.S. federal prosecutors in Maryland, Burton admitted 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 authorities noted that HyperFund attracted investors with promises of high returns of "0.5% to 1% daily." However, there was no actual cryptocurrency mining or sustainable source of income behind it. The funds essentially came from new investors, making it 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 through global fundraising and was used for promotion and money transfers during its operation, constituting a large-scale cross-border wire fraud network.

Burton faces a maximum of 5 years in federal prison, with his 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)