A Florida man, widely recognized online as “Bitcoin Rodney,” has pleaded guilty to participating in an unlicensed money transmitting operation associated with a staggering $1.8 billion cryptocurrency fraud scheme. Rodney Burton, 56, who resides in Miami and has a home in Prince George’s County, Maryland, acknowledged in federal court in Baltimore that he played a key role in promoting HyperFund, a platform that, according to prosecutors, orchestrated an expansive wire-fraud operation targeting investors across the globe.
Court documents reveal that between June 2020 and January 2022, Burton conspired to provide unlicensed money-transmitting services that facilitated HyperFund’s operations, enabling him to enrich himself significantly. The platform presented itself as a legitimate cryptocurrency investment option, luring investors with promises of daily returns ranging from 0.5% to 1% on “memberships,” with the enticing prospect of doubling or tripling their initial investment.
Prosecutors allege that HyperFund falsely claimed these payouts were supported by revenue generated from substantial crypto-mining operations, which, in reality, never existed. By 2021, amid growing concerns, the company began to freeze withdrawals for investors entirely, raising further alarms about its legitimacy.
Burton is reported to have controlled several companies that purported to provide consulting services, yet in reality, functioned as unlicensed money transmitters that funneled investor funds through the fraudulent scheme. Authorities have calculated that he personally appropriated over $7.8 million from the operation, with a portion of those proceeds coming from victims based in Maryland.
Facing a potential sentence of up to five years in prison for the conspiracy charge, Burton’s sentencing is scheduled for July 23 before U.S. District Judge Richard D. Bennett. The case is being prosecuted by Assistant U.S. Attorney Christina A. Hoffman, who emphasized that this incident is part of a broader investigation into cryptocurrency platforms that exploit investment trends to mask fraudulent activities.
Additionally, a report from Rolling Stone highlighted that “Bitcoin Rodney” leveraged connections with celebrities such as actor Jamie Foxx and rapper Rick Ross to enhance his public image. He also organized a cryptocurrency conference in Miami in 2021, featuring appearances from notable figures like “Shark Tank” investor Draymond Green, “Wolf of Wall Street” author Jordan Belfort, singer Akon, and comedian Tiffany Haddish, further amplifying the reach of his fraudulent operations.
