Federal Charges Against Rodney Burton
Rodney Burton, widely known in the cryptocurrency world as ‘Bitcoin Rodney,’ is facing serious federal charges for his alleged role in promoting the $1.8 billion HyperFund cryptocurrency scheme. If convicted, Burton could spend up to 20 years in prison.
Specific Allegations
According to a recent indictment, Burton is charged with:
- Conspiracy to commit wire fraud
- Multiple counts of wire fraud
- Money laundering
- Operating an unlicensed money‑transmitting business
These charges carry significant prison time—up to 20 years for each wire‑fraud count and 10 years for each money‑laundering count.
The HyperFund Scheme
HyperFund, also known as HyperVerse, was marketed as a lucrative crypto investment opportunity, promising daily returns of 0.5% to 1% until investors doubled or tripled their money. Prosecutors allege that these returns were falsely attributed to non‑existent cryptocurrency mining operations. By 2021, investors began experiencing restrictions and blocks on their withdrawals.
Arrest, Bail, and Flight Risk
Burton’s legal troubles began in January 2024 when he was arrested at Miami International Airport while allegedly attempting to flee the country on a one‑way ticket to the United Arab Emirates. A federal judge denied his bail request, citing him as an ‘extreme flight risk.’
Lavish Lifestyle Funded by Investors
Court documents reveal that Burton and his co‑conspirators allegedly used investor funds to finance a lavish lifestyle, including luxury condominiums, high‑end sports cars, and a yacht. Burton’s trial is scheduled for March next year.
Public Profile and Promotion
Burton rose to prominence in the crypto community through aggressive marketing and high‑profile appearances. He hosted events featuring celebrities like Daymond John from ‘Shark Tank’ and musician Akon, and was seen with other stars such as Jamie Foxx and Rick Ross.
Defense and Co‑Defendants
In his defense, Burton claims he believed HyperFund was a legitimate business and places blame on co‑founder Xue Lee (also known as Sam Lee), whom he alleges orchestrated the deception. Lee and another promoter, Brenda ‘Bitcoin Beautee’ Chunga, were charged by the SEC in January 2024. Chunga has pleaded guilty, while Lee remains at large.
Broader Implications
As the case unfolds, the crypto community watches closely, reminded of the risks involved in high‑return investment schemes.
