Crypto Promoter Hit With New Indictment Over $1.8 Billion HyperFund Case
Crypto promoter Rodney Burton, popularly referred to as “Bitcoin Rodney,” is going through new expenses for his alleged position within the $1.8 billion HyperFund pyramid scheme. This growth comes virtually two years after the US Department of Justice brought criminal charges towards two of the co-founders of the crypto Ponzi scheme.
In January 2024, the US DOJ charged Xue Lee (Sam Lee) and Brenda Chunga (Bitcoin Beautee) for his or her roles in HyperFund. According to the prosecutors, the founders falsely claimed that the scheme’s buyers would obtain substantial returns paid from non-existent crypto mining operations.
The fraudulent scheme, which additionally drew the eye of the US Securities and Exchange Commission (SEC), collapsed in 2022, leaving buyers unable to withdraw their cash. The SEC filed a civil motion towards the founders, stating that HyperFund lacked any actual income supply aside from buyers’ funds.
US DOJ Adds Wire Fraud Charge To HyperFund’s Promoter
On Friday, December 12, the US Attorney’s Office for the District of Maryland announced new indictment expenses towards 56-year-old Burton for actively selling the fraudulent HyperFund scheme. The new expenses embrace conspiracy to commit wire fraud, two counts of wire fraud, seven counts of cash laundering, and one rely of working an unlicensed cash transmitting enterprise.
The 56-year-old crypto promoter, who was initially going through two counts associated to unlicensed cash transmission, is now staring down at a protracted jail sentence if discovered responsible on all counts; a most of 20 years in federal jail for the wire fraud conspiracy and every wire fraud rely, 10 years for every cash laundering rely, and 5 years for the unlicensed cash transmission enterprise.
The superseding indictment additionally accused Burton of misappropriating investors’ funds within the buy of luxurious apartment houses, sports activities automobiles, and a yacht. The crypto influencer managed to construct a crypto neighborhood following whereas internet hosting varied celebrities, together with Akon, Jamie Fox, and Rick Ross.
According to courtroom filings, Burton claimed that he was made to consider that he was working a professional enterprise, inflicting him to mislead buyers. The crypto influencer’s trial is anticipated to begin by March 2026.
Crypto Market At A Glance
As of this writing, the overall cryptocurrency market is valued at round $3.05 trillion, reflecting a 0.2% bounce up to now 24 hours.
