Miami Man Indicted in Alleged $1.8 Billion HyperFund Investment Fraud Scheme

According to the U.S. Attorney’s Office for the District of Maryland, Rodney Burton, a 56-year-old individual also known as “Bitcoin Rodney,” has been indicted by a federal grand jury on charges related to a widespread financial scheme. Burton, who has ties to both Miami, Florida, and Prince George’s County, Maryland, is accused of playing a significant role in promoting what is alleged to be a fraudulent investment platform called HyperFund, and its subsequent iterations. The indictment includes charges of conspiracy to commit wire fraud, two counts of wire fraud, seven counts of money laundering, and one count of operating an unlicensed money transmitting business.

The scheme, which allegedly ran from June 2020 to May 2024, involved the promotion of HyperFund with claims of substantial daily passive rewards for investors. Promotional materials for HyperFund reportedly asserted that investors who purchased “memberships” could expect to receive between 0.5 and 1 percent daily on their investment, with the promise that their initial capital would eventually double or triple. These claims were allegedly bolstered by the assertion that the platform’s payments were partially funded by revenues from large-scale cryptocurrency mining operations. However, the indictment contends that HyperFund did not, in fact, operate such mining ventures. Investors, including those from Maryland, are reported to be among the victims of this alleged conspiracy.

Further details in the indictment suggest that by 2021, HyperFund began to restrict or block investors from withdrawing their funds. Rodney Burton is also accused of using proceeds obtained from HyperFund investors to acquire luxury assets, including high-end condominiums, sports cars, and a yacht.

If convicted, Burton could face significant prison sentences for the charges brought against him. The maximum penalty for conspiracy to commit wire fraud and each count of wire fraud is 20 years in federal prison. For the money laundering charges, he faces up to 10 years in prison per count, and an additional five years for operating an unlicensed money transmitting business. It is important to note that federal sentences are typically determined by a judge after considering federal sentencing guidelines and other statutory factors, and actual sentences may be less than the maximum penalties.

The investigation leading to the indictment was a collaborative effort involving the Internal Revenue Service – Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI) – New York, with U.S. Attorney Kelly O. Hayes for the District of Maryland commending their work. Assistant U.S. Attorneys Spencer L. Todd and Christina A. Hoffman are prosecuting the case on behalf of the U.S. Attorney’s Office.

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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