- Rodney Burton faces expanded charges over $1.8 billion crypto scheme.
- HyperFund’s fraudulent operation misled investors with fake crypto mining promises.
- Burton’s trial scheduled for March 2025 amid serious federal charges.
Rodney Burton, a prominent cryptocurrency promoter known as “Bitcoin Rodney,” is facing expanded federal charges related to his involvement in the $1.8 billion HyperFund crypto scheme. Burton, aged 56, was hit with a superseding indictment by the U.S. Attorney’s Office for the District of Maryland. The new charges against him include conspiracy to commit wire fraud, two counts of wire fraud, seven counts of money laundering, and one charge of operating an unlicensed money transmitting business.
The charges mark a sharp escalation from the previous criminal complaint filed in January 2024, which only included two counts related to unlicensed money transmission. If convicted on all counts, Burton could face up to 20 years in federal prison for the conspiracy and wire fraud charges, with additional sentences of up to 10 years for the money laundering counts.
The charge of operating an unlicensed money transmitting business carries a maximum of five years in prison.
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The Alleged Scheme and Investor Deception
Burton and his co-conspirators operated HyperFund, also known as HyperVerse, between June 2020 and May 2024. The platform presented itself as a legitimate cryptocurrency investment opportunity, promising daily returns of 0.5% to 1% until investors’ initial investments doubled or tripled. The returns were allegedly tied to large-scale crypto mining operations. However, prosecutors argue that these mining operations never existed.
By 2021, the scheme began to unravel, as HyperFund started blocking investor withdrawals. Burton is accused of using the proceeds from the scheme to purchase luxury real estate, sports cars, and even a yacht. The indictment paints a picture of a fraudulent operation designed to deceive investors while lining the pockets of its promoters.
Burton’s Public Profile and Legal Struggles
Burton, who gained significant exposure in the crypto community, was known for hosting events with celebrities like Shark Tank’s Daymond John and singer Akon. He also appeared on social media with stars like Jamie Foxx and Rick Ross. Despite his public persona, Burton faces severe legal consequences for his involvement in the scheme.
The legal troubles surrounding Burton intensified after his arrest in January 2024. He was apprehended at Miami International Airport with a one-way ticket to the UAE. A federal judge denied his bail request, citing the risk of flight due to Burton’s connections and the nature of the charges. His trial is scheduled for March of the coming year.
Burton’s defense has raised some intriguing claims. He recently argued that he believed the business was legitimate and that co-founder Xue Lee (also known as Sam Lee) had orchestrated a fraudulent scheme that misled both him and the investors. Lee and promoter Brenda “Bitcoin Beautee” Chunga have already faced charges from the SEC, with Chunga pleading guilty and Lee still at large.
With Burton facing such serious charges, the case continues to attract significant attention within the cryptocurrency community.
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