Rodney Burton — known online as Bitcoin Rodney — pleaded guilty this week to a conspiracy charge tied to the HyperFund fraud, a $1.8 billion global scheme that promised investors daily returns from crypto mining operations that never existed. Burton faces up to five years in prison, with sentencing scheduled for July 23.
The plea and the charges
Burton entered his guilty plea in federal court to one count of conspiracy to operate an unlicensed money-transmitting business. Between June 2020 and January 2022, he helped promote HyperFund and processed investor funds without the required licenses. Court records show he personally pocketed at least $7.85 million, including money traced back to HyperFund victims in Maryland.
How the scheme worked
HyperFund lured investors with promises of daily returns of 0.5% to 1%, supposedly generated by cryptocurrency mining operations. Those operations never existed. The entire enterprise was a wire-fraud scheme that pulled in roughly $1.8 billion from victims worldwide before collapsing. Burton was one of several promoters who kept the pipeline of new money flowing.
Burton's shell companies
To move money, Burton controlled multiple entities that he presented as consulting firms. Prosecutors say they actually operated as unauthorized money-transmission businesses — a front to collect and launder investor funds. The plea deal acknowledges he conspired to provide these unlicensed services, profiting directly from the influx of cash.
Earlier action against HyperFund operators
Burton isn't the first to face consequences. Federal authorities previously took action against three other HyperFund operators, including co-founder Sam Lee. The case continues to ripple through the crypto world as regulators and prosecutors tighten the net around promoters of fraudulent investment schemes.
Burton's sentencing hearing is set for July 23. He could get the maximum five years, though the judge has discretion. The government hasn't said whether it will seek restitution for victims, and that question remains open.
