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‘Bitcoin Rodney’ Pleads Guilty in $1.8 Billion Crypto Fraud Case - Crypto Economy
TL;DR:
A Florida citizen known on digital platforms as Bitcoin Rodney pleaded guilty this week in a Baltimore federal court. The defendant admitted responsibility in a conspiracy to operate an unlicensed money transmitting business tied to a $1.8 billion crypto fraud scheme.
Rodney Burton, 56, and a resident of Miami, accepted the charges for actively promoting HyperFund
According to evidence presented by the prosecution, this platform functioned as a global-scale wire fraud operation. The system was marketed to the public as a legitimate digital asset investment vehicle.
The company promised daily returns ranging between 0.5% and 1% through the purchase of special memberships. Investigations revealed that these gains were supposed to continue until doubling or tripling the initial capital. HyperFund claimed that payouts came from revenue generated by large digital mining operations. However, U.S. prosecutors pointed out that such mining facilities never existed.
The scheme’s structure and promotional network
Burton directly controlled a network of corporations that pretended to offer financial consulting services. Case documentation shows that these firms actually operated as unlicensed money transmitters
Through this structure, investor funds were funneled into the fraudulent network.
Prosecution data suggests that the promoter kept more than $7.8 million from victims in the state of Maryland. The scheme began to collapse when the platform blocked user withdrawal requests.
The defendant’s public profile was built through high-impact media campaigns. A report by Rolling Stone details that Burton used his relationships with public figures like actor Jamie Foxx and rapper Rick Ross to boost his reputation in the sector.
During 2021, the defendant organized a cryptocurrency conference in the city of Miami.
Television and business personalities such as investor Daymond Green, author Jordan Belfort, and comedian Tiffany Haddish participated in this event. These massive gatherings served as capital-raising tools under the promise of high returns.
Burton now faces a maximum penalty of five years in prison on the conspiracy charge. The final sentencing ruling by U.S. District Judge Richard D. Bennett is scheduled for next July 23.