Rodney Burton, widely recognized in the cryptocurrency community as “Bitcoin Rodney,” is currently facing serious legal challenges, with federal charges broadened against him related to his alleged involvement in a massive $1.8 billion fraudulent scheme linked to the HyperFund cryptocurrency platform.
The latest developments stem from a superseding indictment revealed by the U.S. Attorney’s Office for the District of Maryland, which not only details Burton’s role but also escalates the scope of the accusations against him. Prosecutors have charged him with conspiracy to commit wire fraud, two counts of wire fraud, seven counts of money laundering, and one count of operating an unlicensed money transmitting business. If found guilty on all charges, Burton could be sentenced to a staggering 20 years in prison for each wire fraud count, up to 10 years for each money laundering charge, and an additional five years for handling unlicensed money transmission.
This indictment marks a significant shift from the original criminal complaint filed back in January 2024, which consisted of only two counts concerning unlicensed money transmission, each carrying a maximum sentence of five years. Burton’s apprehension took place at Miami International Airport while he was reportedly attempting to board a one-way flight to the United Arab Emirates. A federal judge has since refused his bail request, citing him as an “extreme flight risk,” leading to his continued detention.
The HyperFund platform, also known as HyperVerse, was purportedly operational from June 2020 until May 2024. Prosecutors allege that the platform misled investors by promising returns between 0.5% and 1% daily, with claims that these returns were derived from non-existent large-scale cryptocurrency mining operations. Concerns over the legitimacy of these promises escalated around 2021 when the platform began to restrict and ultimately block withdrawals from investors.
Furthermore, the indictment alleges that Burton misappropriated investor funds to sustain a lavish lifestyle, which included purchasing luxury condominiums, high-end sports cars, and even a yacht.
Burton’s narrative within the crypto space has been characterized by aggressive marketing and high-profile public appearances. He gained considerable attention for hosting a 2021 event in Miami featuring notable personalities like “Shark Tank” investor Daymond John and musician Akon. His social engagements also included appearances alongside celebrities such as Jamie Foxx and Rick Ross.
Legal documents reveal that Burton has a previous conviction for conspiracy to distribute cocaine. In recent assertions to the court, he has claimed that he genuinely believed in the legitimacy of HyperFund, suggesting that any deceit originated from the platform’s co-founder, Xue Lee (also referred to as Sam Lee). Burton contends that Lee was responsible for the misleading information directed at both investors and promoters.
In a related twist, Xue Lee and another promoter, Brenda “Bitcoin Beautee” Chunga, faced charges from the SEC back in January 2024. Chunga has since pleaded guilty to the allegations, while Lee is currently at large, adding further complexity to this unfolding saga.
Burton’s trial is slated for March, where all eyes will be on the courtroom as details of this alleged $1.8 billion scam are revealed. The unfolding case serves as a potent reminder of the ongoing scrutiny facing the cryptocurrency sector, particularly concerning regulatory compliance and investor protection.
