A Miami crypto promoter known as Bitcoin Rodney has pleaded guilty for his role in the $1.8 billion HyperFund fraud scheme, one of the largest cryptocurrency related fraud cases to reach U.S. courts.
Key Takeaways
- Rodney “Bitcoin Rodney” Burton pleaded guilty to conspiracy to operate an unlicensed money transmitting business tied to HyperFund.
- Prosecutors said HyperFund raised about $1.8 billion from investors worldwide through false promises of high returns.
- Burton allegedly received at least $7.85 million from the operation through companies presented as consulting firms.
- The case comes as crypto related fraud continues to rise, with the FBI reporting $11.4 billion in losses during 2025.
What Happened?
Rodney “Bitcoin Rodney” Burton, a Miami resident and prominent cryptocurrency promoter, has admitted his involvement in the massive HyperFund fraud operation that authorities say deceived investors around the world.
The 56 year old pleaded guilty in federal court to conspiracy to operate an unlicensed money transmitting business. Prosecutors allege Burton played a key role in promoting HyperFund and helping move investor funds through a network of companies that were presented as consulting businesses but allegedly functioned as unauthorized money transmission entities.
🚨 LATEST: Crypto promoter “Bitcoin Rodney” pleaded guilty in the $1.8B HyperFund fraud case.
— Cointelegraph (@Cointelegraph) June 18, 2026
HyperFund allegedly promised returns from fake crypto mining operations. pic.twitter.com/c1CSw1vjS4
HyperFund Promised High Returns to Investors
According to court filings and statements from the U.S. Attorney’s Office for the District of Maryland, HyperFund marketed itself as a legitimate cryptocurrency investment platform between 2020 and 2022.
The company encouraged users to purchase membership packages and promised daily passive rewards ranging from 0.5% to 1%. Investors were told these returns would continue until they received double or even triple their original investment.
To support those claims, HyperFund promoted the idea that its payouts were backed by revenue generated from large scale cryptocurrency mining operations. However, prosecutors said those mining operations did not exist.
Officials described HyperFund as a global wire fraud scheme that collected approximately $1.8 billion from victim investors worldwide.
An official statement described HyperFund as follows:
Burton Allegedly Profited Millions
According to the plea agreement, Burton conspired to provide unlicensed money transmitting services from June 2020 through January 2022.
Investigators said he controlled several entities that claimed to provide consulting services. Authorities allege these businesses were actually used to process and move investor funds connected to HyperFund.
As part of the operation, Burton personally received at least $7,851,711 in proceeds. Prosecutors said some of those funds came from HyperFund victims located in Maryland.
The guilty plea represents another major development in the government’s broader effort to pursue individuals connected to the HyperFund network.
Earlier Charges Targeted Other HyperFund Figures
Burton’s plea follows legal action against several other individuals linked to the scheme, including HyperFund co-founder Sam Lee.
Federal authorities continue to investigate and prosecute individuals accused of participating in large scale cryptocurrency fraud operations. The HyperFund case has become one of the most closely watched crypto enforcement actions because of its global reach and the amount of investor money involved.
The investigation involved multiple agencies, including the Internal Revenue Service Criminal Investigation division and Homeland Security Investigations.
U.S. Attorney Kelly O. Hayes announced Burton’s guilty plea alongside officials from both agencies.
Crypto Fraud Remains a Growing Problem
The case arrives as cryptocurrency related scams continue to generate significant losses for investors.
According to the FBI’s Internet Crime Complaint Center report released in April, crypto related fraud losses reached $11.4 billion in 2025. The agency received 181,565 cryptocurrency related complaints, representing a 21% increase from the previous year.
Investment fraud accounted for the largest share of those losses, totaling approximately $7.2 billion across more than 61,000 complaints.
The data highlights how fraudulent investment platforms continue to target individuals seeking exposure to digital assets and high yielding opportunities.
What Happens Next?
Burton faces a maximum sentence of five years in federal prison for conspiracy to operate an unlicensed money transmitting business.
His sentencing is scheduled for July 23 before U.S. District Judge Richard D. Bennett.
The outcome could mark another significant milestone in the government’s ongoing crackdown on large scale cryptocurrency fraud schemes.
CoinLaw’s Takeaway
In my experience, cases like HyperFund show that promises of guaranteed high returns remain one of the biggest warning signs in crypto. I found it particularly striking that the scheme allegedly relied on claims of mining operations that prosecutors say never existed. As regulators and law enforcement agencies continue pursuing major crypto fraud cases, investors should pay close attention to how returns are generated and verify claims before committing funds. The HyperFund case is another reminder that transparency matters far more than marketing when evaluating any investment opportunity.
