Rodney Burton, who lives in Florida and is known online as Bitcoin Rodney, pleaded guilty in federal court in the United States to a charge of conspiracy to operate an unlicensed money transmission business. According to prosecutors, the case is linked to a crypto fraud scheme totaling $1.8 billion.
Admission of guilt in HyperFund investigation
Burton, 56, lives in Miami and also resides in Prince George’s County, Maryland, according to the filing filed in federal court in Baltimore. Prosecutors alleged that Burton promoted the crypto platform HyperFund, but that the structure was actually part of a large-scale wire fraud scheme targeting investors around the world.
According to court documents, Burton participated in the operation of unlicensed money transmission services supporting the promotion of HyperFund between June 2020 and January 2022, generating significant revenue in the process.
In the file, it was stated that HyperFund presented itself as a legitimate crypto investment option, promising daily returns of 0.5 percent to 1 percent to investors through memberships. It was reported that the target in the system is for the investor to reach two or three times the amount he initially placed.
Promise of return and cessation of withdrawals
According to prosecutors, HyperFund claimed that these payments were funded in part by revenue from large-scale crypto mining operations. However, the investigating authorities stated that the mining operations in question did not actually exist. The documents also stated that the company started to completely freeze investor attractions as of 2021.
Authorities argued that Burton managed a network of companies claiming to provide consultancy services, but that these structures were actually used as unlicensed money transmission channels. According to prosecutors, funds from investors were routed within the system through this network.
$7.8 million revenue and penalty schedule
According to court records, Burton personally received more than $7.8 million from the structure. The prosecutor’s office noted that some of this money was linked to funds from victims based in Maryland.
It was stated that the maximum sentence that could be given to Rodney Burton was five years in prison. His sentencing hearing is scheduled for July 23 before U.S. District Judge Richard D. Bennett. Assistant U.S. Attorney Christina A. Hoffman is prosecuting the case.
Famous names also took part in the promotional activities
According to Rolling Stone, Burton also took advantage of his relationships with well-known names to increase his public visibility. The report claimed that actor Jamie Foxx and rap artist Rick Ross helped Burton raise his profile.
According to the same news, Burton also organized a crypto conference in Miami in 2021. It was stated that names such as investor Draymond Green, Wall Street writer Jordan Belfort, singer Akon and comedian Tiffany Haddish attended the event.
