Rodney Burton, aka “Bitcoin Rodney”now faces a series of federal charges in the United States. Former promoter of the HyperFund project, renamed HyperVerse, he is being prosecuted for electronic fraud, money laundering and illegal transmission of funds. According to the indictment, millions of dollars in investments were misappropriated. The case marks a new stage in the repression of abuses linked to the promotion of unregulated crypto projects.
In brief
- Rodney Burton, aka “Bitcoin Rodney”, is being prosecuted by US federal authorities for electronic fraud and money laundering.
- He is accused of promoting HyperFund, a crypto investment program suspected of operating as a Ponzi scheme.
- Between June 2020 and February 2022, Burton reportedly received more than $7.8 million directly from investors.
- Prosecutors say the promised returns were not based on actual activity, but on deposits from new entrants.
Suspicious flows and illusory promises
As trading volumes collapse in the crypto market, Rodney Burton finds himself at the center of a major federal case, accused of having actively participated in an alleged pyramid scheme, known as HyperFund, then renamed HyperVerse.
According to the US Department of Justice, he received from his personal account more than $7.8 million between June 2020 and February 2022coming directly from investor deposits. The latter were encouraged to purchase investment packages expected to generate up to 1% daily return.
However, according to the prosecution, these promised gains were neither supported by real economic activity, nor generated by income linked to the blockchain or an identifiable financial product. “This is a Ponzi scheme in its most classic structure”, estimate prosecutors.
The elements of the file reveal a use of funds which fuels suspicions of aggravated fraud. A large part of the sums collected would have been redistributed or used without clear economic justification. According to federal investigators, Rodney Burton:
- Transferred $1.2 million to a business partner;
- Paid approximately $920,000 to recruiters involved in the program;
- Used the funds to purchase a Rolls Royce and other undocumented personal expenses;
- Failed to demonstrate that these flows served any commercial activity.
Faced with on-chain data, prosecutors added a formal charge of electronic fraud in December, in addition to those of money laundering and participation in a massive fraud system. If convicted, Burton faces several decades in federal prison.
An influencer in the spotlight of justice
Rodney Burton is not just a passive participant in the HyperFund project. Very well known in the crypto world, he enjoyed significant notoriety, notably thanks to his past collaborations with celebrities like Jamie Foxx or Rick Ross.
He presented himself as a financial educator and used his image to massively promote HyperFund via social networks and during public events. The authorities claim that its position has made it a central vector of recruitment, attracting numerous investors seduced by its promises and its lifestyle.
The prosecution contends that Burton was aware of the true nature of the program and continued to promote it despite the lack of tangible evidence of a viable business model. Its involvement therefore goes beyond simple promotion.
He would have been a structuring element of the system's expansion strategy, by recruiting other ambassadors and structuring a distribution chain of paid recruiters. This proactive role is today a key element of the investigation and justifies the increased charges against him.
The Burton case joins a series of prosecutions targeting controversial figures in the cryptosphere. After the 15 years in prison for Do Kwon, found guilty of massive fraud, American justice seems determined to establish clear responsibilities for the abuses of the sector. The upcoming trial will tell whether “Bitcoin Rodney” will follow the same path.
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