HyperFund promoter Bitcoin Rodney pleads guilty in $1.8B fraud case

Between June 2020 and January 2022, Burton utilized several shell companies to promote HyperFund, a project that enticed participants with daily returns of up to 1%. While the platform claimed these profits stemmed from cryptocurrency mining, federal authorities identified the operation as a classic pyramid scheme that relied on new investor capital to pay off earlier participants. Burton admitted to conspiring to provide unlicensed services to facilitate this movement of money, ultimately using the funds for personal enrichment.

The U.S. Attorney’s Office for the District of Maryland confirmed the plea, noting that Burton faces a maximum sentence of five years in prison, with a hearing scheduled for July 23. This conviction marks a significant development in the broader crackdown on HyperFund, which the SEC and federal prosecutors have labeled one of the largest crypto frauds in recent years.

Legal proceedings continue for other key figures. Sam Lee, identified as a co-founder of the project, faces ongoing charges, while Brenda Chunga is awaiting sentencing following her own involvement in the conspiracy. The scheme, which operated under various names including HyperCapital before its final collapse in November 2022, is estimated to have defrauded investors of roughly $1.8 billion globally.