A key promoter of an alleged global $3 billion Ponzi scheme claims he was ensnared by an intricate fraud masterminded by Australian Sam Lee and is seeking release from custody, according to newly filed court documents in the United States. Rodney Burton, known in cryptocurrency circles as “Bitcoin Rodney,” was charged in early 2024 for his involvement in the HyperVerse scheme, which reportedly defrauded investors of approximately $1.89 billion globally from 2020.
Burton, who has gained notoriety for his extravagant lifestyle showcased in promotional videos—featuring luxury cars, a branded Lamborghini, diamond-encrusted watches, and lavish meals—asserts that he acted in good faith while endorsing HyperFund and HyperVerse. His legal team submitted a memorandum to the district court in Maryland, arguing for his release from more than 22 months of pretrial detention.
The HyperTech group, associated with the operations of HyperFund and HyperVerse, has faced scrutiny under various names such as HyperCapital and HyperNation. Burton’s counsel contends that the Department of Justice should dismiss the case against him, citing the stance of former President Donald Trump, who reportedly favors civil regulation over criminal prosecution in the digital asset sector.
Central to Burton’s defense is the claim that he conducted “extraordinary due diligence” before backing the scheme, including travels to corporate offices in Hong Kong and Dubai to meet Lee. Burton argues that he was misled by the seemingly legitimate corporate structure established by Lee and others to defraud investors.
Included in the court documents was a photograph displaying Burton with Lee in what was claimed to be the Dubai office of HyperFund. A broader investigation conducted by Guardian Australia in late 2023 had uncovered the global extent of the HyperVerse scheme, leading to charges against Lee and allegations of securities and wire fraud in the U.S. A separate civil complaint from the U.S. Securities and Exchange Commission (SEC) has also accused Lee of fraud and unregistered securities sales.
Lee’s alleged co-founder, Ryan Xu, has not been indicted in the U.S. but is named in the movement as HyperFund’s general counsel. Lee, once dubbed the “crown prince of bitcoin,” relocated to Dubai in late 2021. He filed a response to the civil charges in October, claiming the court lacked jurisdiction and denying all allegations.
In response to inquiries, Lee expressed sympathy for Burton, depicting him as a collateral victim of what he termed a “Biden Era anti-crypto witch hunt,” while dismissing Burton’s claims as unfounded. Lee suggested that a program akin to HyperVerse would not face regulatory challenges under the Trump administration.
Burton’s memorandum further highlights the involvement of registered Australian companies allegedly manipulated by Lee and the HyperFund project, which were purportedly used to lend credibility to their fraudulent activities. The document details endorsements from notable figures like Apple co-founder Steve Wozniak and presentations by individuals masquerading as company executives—pointing to a sophisticated level of deception orchestrated by Lee.
Following the Guardian Australia investigation, the Australian Securities and Investments Commission (ASIC) began examining Lee’s previous venture, Blockchain Global. Previously, ASIC had secured a travel ban on one of Lee’s associates, which expired prior to legal actions against him, allowing his departure from the country.
Burton’s legal representation argues that he has been subjected to prolonged pretrial confinement and urges the court to restore his freedom. The memorandum also notes that Trump’s presidency aligns with a possible pro-crypto agenda. The civil case against Lee has been paused pending the outcome of criminal proceedings, as both cases are interconnected, sharing common factual questions.
Burton’s trial is currently slated for March 2026, as he aims for an eventual resolution to his legal troubles amid ongoing investigations into the HyperVerse scheme.
