Rodney Burton, a 56-year-old crypto promoter known online as “Bitcoin Rodney,” is facing expanded federal charges tied to his alleged role in promoting the $1.8 billion HyperFund cryptocurrency scheme.
Key Takeaways:
- US prosecutors expanded charges against “Bitcoin Rodney” over the $1.8B HyperFund scheme.
- Burton faces decades in prison after being denied bail as a flight risk.
- HyperFund allegedly promised fake returns and blocked withdrawals.
According to a superseding indictment unsealed Friday by the US Attorney’s Office for the District of Maryland, prosecutors now accuse Burton of 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 convicted on all charges, Burton could face up to 20 years in prison for each wire fraud-related count, up to 10 years per money laundering count, and an additional five years for the unlicensed money transmission charge.
Expanded Indictment Deepens Case Against “Bitcoin Rodney”
The new indictment marks a sharp escalation from the original criminal complaint filed in January 2024, which charged Burton with just two counts related to unlicensed money transmission.
Those earlier charges carried a maximum sentence of five years each. Burton was arrested at Miami International Airport that month while allegedly attempting to leave the country on a one-way ticket to the United Arab Emirates.
A federal judge later denied his bail request, citing him as an “extreme flight risk,” and he has remained in custody since.
According to court filings, Burton and his alleged co-conspirators operated HyperFund, also known as HyperVerse, from June 2020 through May 2024.
The platform was marketed as a crypto investment opportunity promising daily returns ranging from 0.5% to 1% until investors doubled or tripled their money.
Prosecutors claim those returns were falsely attributed to large-scale cryptocurrency mining operations that did not exist.
By 2021, HyperFund allegedly began restricting and blocking investor withdrawals.
The indictment further alleges that Burton used investor funds to finance a lavish lifestyle, including the purchase of luxury condominiums, high-end sports cars, and a yacht. His trial is currently scheduled for March next year.
From Celebrity Events to Court Records: The Rise of “Bitcoin Rodney”
Burton rose to prominence within crypto circles through aggressive marketing and high-profile appearances.
He hosted a 2021 Miami event featuring “Shark Tank” investor Daymond John and musician Akon, and appeared publicly with celebrities such as Jamie Foxx and Rick Ross.
Court records also reference a prior conviction for conspiracy to distribute cocaine.
In recent court filings, Burton has maintained that he believed HyperFund was a legitimate business. He has placed blame on co-founder Xue Lee, also known as Sam Lee, alleging Lee orchestrated an elaborate deception that misled both investors and promoters.
Lee and fellow promoter Brenda “Bitcoin Beautee” Chunga were charged by the SEC in January 2024. Chunga has pleaded guilty, while Lee remains at large.
The post Crypto Promoter “Bitcoin Rodney” Faces Up to 20 Years on New Charges appeared first on Cryptonews.
