Read

Security

Robinhood

<p>A Florida man has pleaded guilty to operating an unlicensed money-transmitting business tied to HyperFund, a crypto investment scheme that U.S. authorities have described as a fraud that collected roughly $1.8 billion from investors.</p>
<div id="cn-block-summary-block_96fcbb48eff761ac74f5c9b6e34b7911" class="cn-block-summary">
 <div class="cn-block-summary__nav tabs"><span>Summary</span>
 </div>
 <div class="cn-block-summary__content">
  <ul>
   <li>Rodney “Bitcoin Rodney” Burton has pleaded guilty to operating an unlicensed money transmitting business tied to the $1.8 billion HyperFund crypto fraud scheme.</li>
   <li>Federal prosecutors said Burton received at least $7.8 million for promoting HyperFund, which allegedly promised investors daily returns of up to 1%.</li>
   <li>Burton faces up to five years in prison, while separate criminal proceedings against HyperFund co defendants Sam Lee and Brenda Chunga remain ongoing.</li>
  </ul>
 </div>
</div>
<p>The U.S. Attorney’s Office for the District of Maryland <a href="https://www.justice.gov/usao-md/pr/miami-man-pleads-guilty-conspiracy-charge-connected-cryptocurrency-fraud-scheme" rel="noopener noreferrer nofollow">said</a> Rodney Burton, known online as “Bitcoin Rodney,” admitted to conspiring to provide unlicensed money transmission services that helped promote HyperFund.&nbsp;</p>
<p>Federal prosecutors said Burton participated in the operation between June 2020 and January 2022 and received at least $7.8 million from the scheme.</p>
<p>Court documents state that Burton controlled several companies that purported to offer consulting services while helping market HyperFund to investors. Prosecutors alleged he used investor funds for personal enrichment during his involvement with the platform.</p>
<p>Federal authorities have scheduled Burton’s sentencing for July 23. He faces a maximum prison term of five years for conspiracy to operate an unlicensed money-transmitting business.</p>
<h2 class="wp-block-heading" id="prosecutors-tie-burton-to-global-hyperfund-operation">Prosecutors tie Burton to global HyperFund operation</h2>
<p>Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea alongside investigators from IRS Criminal Investigation and Homeland Security Investigations.</p>
<p>You might also like: <a href="https://crypto.news/michelle-bond-to-face-ftx-campaign-finance-charges/" rel="noopener noreferrer nofollow"> Michelle Bond to face FTX campaign finance charges </a></p>
<p>Prosecutors described HyperFund as a global fraud operation that promised investors daily returns of 0.5% to 1%. The U.S. Attorney’s Office said the platform claimed the payouts came from cryptocurrency mining activities, although prosecutors alleged the company did not generate the mining revenue it advertised.</p>
<p>HyperFund ranked among the largest crypto fraud cases in recent years. Federal authorities valued the scheme at approximately $1.8 billion, while the U.S. Securities and Exchange Commission <a href="https://crypto.news/sec-accuse-hyperfund-founders-of-1-7m-fraud/" rel="noopener noreferrer nofollow">alleged</a> in a January 2024 civil complaint that HyperFund collected about $1.7 billion from investors worldwide.</p>
<p>In that complaint, the SEC accused HyperFund operators of promoting investments linked to highly profitable crypto mining operations while using funds from newer participants to pay earlier investors. Gurbir Grewal, then Director of the SEC’s Division of Enforcement, said the platform attracted investors with promises of mining-related profits even though investor funds ultimately financed the operation.</p>
<h2 class="wp-block-heading" id="other-defendants-remain-part-of-the-case">Other defendants remain part of the case</h2>
<p>Federal prosecutors in Maryland charged Australian national Sam Lee and Maryland resident Brenda Chunga in January 2024. The government accused both of conspiracy to commit securities fraud and wire fraud in connection with HyperFund.</p>
<p>Chunga’s sentencing has been postponed several times and is currently scheduled for June 29. Lee, who authorities have identified as a co-founder of HyperFund, has been charged but has not been convicted.</p>
<p>Public filings show the project underwent several rebrands during its existence. HyperCapital launched in early 2022 as a decentralized finance ecosystem and later operated under the HyperFund name before the enterprise collapsed in November 2022.</p>
<p>Read more: <a href="https://crypto.news/ark-invest-buys-18-4m-in-coinbase-shares-trims-robinhood/" rel="noopener noreferrer nofollow"> Ark Invest buys $18.4M in Coinbase shares, trims Robinhood </a></p>

HyperFund promoter Bitcoin Rodney admits role in $1.8B crypto fraud

Table of Contents

crypto.news

Other articles published on Jun 18, 2026

Join our free newsletter for daily crypto updates!