Rodney Burton, a 56-year-old Miami resident known online as 'Bitcoin Rodney,' pleaded guilty this week in federal court in Baltimore to conspiring to run an unlicensed money-transmitting business tied to a $1.8 billion cryptocurrency fraud scheme, according to prosecutors. Burton admitted to promoting HyperFund, a cryptocurrency platform that prosecutors say was a wire-fraud operation targeting investors worldwide, and personally received more than $7.8 million from the scheme. The guilty plea reflects continued federal scrutiny of cryptocurrency platforms accused of using investment hype to disguise fraud.
Burton Pleads Guilty to Conspiracy Charge in Baltimore Federal Court
Burton, who also has a residence in Prince George's County, Maryland, admitted to conspiring between June 2020 and January 2022 to provide unlicensed money-transmitting services that helped promote HyperFund. According to court documents, he faces up to five years in prison on the conspiracy charge. Sentencing before U.S. District Judge Richard D. Bennett is set for July 23. Assistant U.S. Attorney Christina A. Hoffman is prosecuting the case.
HyperFund Promised Daily Returns Through Nonexistent Mining Operations
HyperFund marketed itself to investors as a legitimate crypto investment vehicle, promising daily returns of 0.5% to 1% on 'memberships' until an investor's initial stake doubled or tripled. The platform claimed those payouts were funded in part by revenue from large crypto-mining operations that, prosecutors say, never actually existed. By 2021, the company had begun freezing investor withdrawals altogether.
Burton Controlled Network Funneling $7.8 Million to Himself
Prosecutors say Burton controlled a network of companies that claimed to provide consulting services, but actually functioned as unlicensed money transmitters funneling investor funds through the scheme. He personally pocketed more than $7.8 million from the operation, drawing some of those proceeds from Maryland-based victims. According to a report from Rolling Stone, Burton relied on celebrity associates like actor Jamie Foxx and rapper Rick Ross to help boost his profile, and hosted a crypto conference in Miami in 2021 that featured appearances from 'Shark Tank' investor Draymond Green, 'Wolf of Wall Street' author Jordan Belfort, singer Akon, and comedian Tiffany Haddish.
Sentencing Scheduled for July 23 Before Judge Bennett
Burton's sentencing is scheduled for July 23 before U.S. District Judge Richard D. Bennett in federal court. He faces a maximum penalty of up to five years in prison on the conspiracy charge.
FAQ
What did Rodney Burton plead guilty to this week?
Rodney Burton pleaded guilty in federal court in Baltimore to conspiring to run an unlicensed money-transmitting business tied to a $1.8 billion cryptocurrency fraud scheme involving HyperFund.
How much money did Burton personally receive from the HyperFund scheme?
Prosecutors say Burton personally pocketed more than $7.8 million from the operation, drawing some of those proceeds from Maryland-based victims.
When is Burton scheduled to be sentenced?
Burton's sentencing is scheduled for July 23 before U.S. District Judge Richard D. Bennett, and he faces up to five years in prison on the conspiracy charge.
