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HyperFund raised $1.8 billion from investors worldwide through a cryptocurrency platform prosecutors described as a global wire-fraud scheme. Rodney Burton, also known as “Bitcoin Rodney,” pleaded guilty to a federal conspiracy charge after authorities said he received at least $7.85 million in proceeds.
On June 17, the U.S. Attorney’s Office for the District of Maryland announced that Burton, 56, pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
Prosecutors said Burton promoted HyperFund between June 2020 and January 2022 and participated in providing unlicensed money transmission services that facilitated the scheme’s operations.
According to court filings, HyperFund “purported as a legitimate cryptocurrency investment platform, but in truth, was a global wire-fraud scheme that obtained $1.8 billion from victim-investors worldwide.”
Prosecutors said HyperFund presented itself as a cryptocurrency investment platform offering unusually high returns. Promotional materials allegedly promised investors daily rewards ranging from 0.5% to 1%, along with claims that investors could double or even triple their initial capital.
Federal investigators alleged these representations were materially false and were intended to attract new investors into what authorities describe as a large-scale international fraud.
To support its claims, HyperFund asserted that it generated revenue through extensive cryptocurrency mining operations. Prosecutors alleged the company lacked the mining infrastructure it described to investors.
As the scheme became increasingly unsustainable, prosecutors said HyperFund began restricting and ultimately blocking investor withdrawals in 2021, leaving many participants unable to access their funds.
Federal authorities alleged that Burton personally received at least $7.85 million from the operation, including funds traced to HyperFund investors in Maryland.
The U.S. Attorney’s Office said Burton controlled several companies that “purported to offer consulting services but were in fact unlicensed money transmitting businesses.”
Burton faces a maximum sentence of five years in federal prison. He is scheduled to be sentenced on July 23.
Ready Card users outside the European Economic Area have reportedly faced an abrupt service halt after a transition involving the card issuer disrupted the USDC spending product, according to user notices shared on X.
A notice shared…
