according to the website material - By FinanceFeeds
Rodney Burton, a crypto promoter known as 'Bitcoin Rodney', is facing a much broader range of federal charges related to an alleged HyperFund scheme worth $1.8 billion. In the superseding indictment filed by the U.S. Attorney's Office for the District of Maryland, charges of conspiracy to commit fraud using electronic communications, two counts of fraud using electronic communications, seven counts of money laundering, and a charge of operating a money transfer business without a license have been added. The 56-year-old Burton now faces up to 20 years in prison for each count of fraud using electronic communications, 10 years for each count of money laundering, and five years for the charge of operating a money transfer business without a license. This marks a significant increase in penalties compared to the original indictment from January 2024, which included only two counts of operating a money transfer business without a license with a maximum sentence of five years for each. Burton was arrested in January at Miami International Airport while holding a one-way ticket to the United Arab Emirates. A federal judge denied him bail, calling him 'extremely dangerous for flight', and he has been in custody since. Investor takeaway:
Federal prosecutors are expanding their focus, moving beyond unlicensed activities to full-scale fraud and money laundering related to the alleged payout structure of HyperFund and investor losses.
What was HyperFund and how did prosecutors describe this scheme? The indictment describes how Burton and others promoted HyperFund — also known as HyperVerse — from June 2020 to May 2024. The operation was presented as a platform for crypto investments, promising daily returns of 0.5% to 1% until the investor’s initial contribution doubled or tripled. The proposal was based on claims of large-scale cryptocurrency mining operations that, according to prosecutors, never existed. HyperFund began blocking withdrawals in 2021 as complaints increased. According to prosecutors, Burton spent investor funds on luxury real estate, sports cars, and a yacht. Court documents describe HyperFund as a classic payout scheme disguised under crypto terminology and community online events. The platform actively used advertising culture, and Burton became one of its most prominent public figures. In 2021, he hosted a party in Miami featuring Daymond John and Akon, and appeared online with celebrities including Jamie Foxx and Rick Ross. Court documents also mention a prior conviction for conspiracy to distribute cocaine. Who else is charged in the HyperFund case? In the HyperFund case, one person has already pleaded guilty. Promoter Brenda Chunga, known as 'Bitcoin Beautee', pleaded guilty after being charged by the Securities and Exchange Commission in January 2024. She acknowledged her role in promoting the scheme. Another notable figure, alleged co-founder and Australian entrepreneur Xue 'Sam' Li, remains at large. Prosecutors claim that Li played a central role in creating the structure and marketing strategy of HyperFund. Last year, Li and Chunga were charged with fraud and unregistered securities offerings, and regulators linked them to earlier projects with a similar scheme. Burton claimed in his statements that he believed HyperFund was a legitimate enterprise, asserting that he was misled by Li, who he said orchestrated a 'complex deception'. Prosecutors counter that Burton was directly involved in promoting returns that had no operational basis.
Burton's trial is scheduled for March next year. If the court accepts the prosecution's version regarding HyperFund, this case could become one of the most notable criminal cases related to alleged cryptocurrency payout schemes in the post-2020 period. The indictment highlights both investor losses and the scale of marketing used to attract participants during a time of heightened interest in online investment communities. The U.S. prosecution describes HyperFund as a years-long campaign that operated on various platforms, in-person events, through direct messages, and third-party promoters. The investigation appears to be ongoing: prosecutors continue to track Li's movements and examine the financial flows of funds coming into HyperFund and their payouts.
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