Florida man pleads guilty in $1.8 billion HyperFund fraud

A Florida man known as "Bitcoin Rodney" has pleaded guilty to federal conspiracy charges for his role in promoting HyperFund, a cryptocurrency investment scheme that prosecutors allege defrauded investors of approximately $1.8 billion worldwide. Rodney Burton, 56, entered his plea to one count of conspiracy to operate an unlicensed money transmitting business in U.S. District Court in Baltimore.

According to court documents, Burton participated in the operation between June 2020 and January 2022. Prosecutors said he controlled several companies that purported to offer consulting services but were actually unlicensed money transmitters that helped funnel investor funds into HyperFund. Authorities allege Burton personally received at least $7.8 million from the scheme, including funds from victims in Maryland.

HyperFund was marketed as a legitimate cryptocurrency investment platform that promised investors unusually high daily returns, typically ranging from 0.5% to 1%, with the prospect of doubling or tripling their initial investment. The platform claimed these payouts were funded by revenue from extensive cryptocurrency mining operations. Federal investigators, however, allege...