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- A federal grand jury expanded charges in a large crypto fraud case.
- Prosecutors allege a long-running scheme tied to false investment promises.
- The case highlights rising scrutiny of crypto promoters.
According to the report, a federal grand jury in Maryland returned a superseding indictment against Rodney Burton, 56, also known as Rodney Bitcoin. Burton lives in Miami, Florida, and Prince George’s County, Maryland. Prosecutors say he played a central role in a cryptocurrency and crypto investment fraud scheme worth $1.8 billion.
The indictment adds detail and scope to earlier charges. Federal authorities now accuse Burton of conspiracy to commit wire fraud. They also list two counts of wire fraud. The filing includes seven counts of money laundering. It also includes one count of operating an unlicensed money transmitting business.
U.S. Attorney Kelly O. Hayes announced the indictment. She appeared with senior officials from the IRS Criminal Investigation and Homeland Security Investigations. Investigators from Washington and New York joined the announcement.
The agencies described a coordinated effort. They focused on financial crime tied to digital assets. The case reflects growing cooperation across federal units. Authorities say complex crypto cases demand such alignment.
Court Details Alleged HyperFund Crypto Fraud
Court records outline conduct from June 2020 through May 2024. During this period, Burton and others allegedly promoted HyperFund. They presented it as a legitimate investment platform. They later promoted successor platforms. Prosecutors say the group sought personal enrichment.
They relied on aggressive marketing and social media outreach. HyperFund materials promised steady daily returns. Investors allegedly heard claims of returns between 0.5 and 1 percent per day. The payments would continue until the platform doubled or tripled the initial stake.
These claims drew investors from many regions. Maryland residents appear among the victims. Prosecutors say the promises lacked any factual basis. HyperFund told users it could fund rewards through large-scale crypto mining.
Investigators say no such operations existed. They found no evidence of mining revenue at the scale claimed. Despite this, the platform continued to solicit funds. Many investors reinvested their balances. Others encouraged friends and family to join.
HyperFund Faces Legal Trouble Over Investor Funds
Problems intensified in 2021. HyperFund allegedly began blocking withdrawals. Users reported delays and denials. The platform offered explanations but no access to funds. Prosecutors say the flow of new money slowed. At the same time, Burton allegedly spent investor funds on personal assets.
These purchases included luxury condominiums. They also included high-end sports cars and a yacht. The indictment does not determine guilt. Burton remains presumed innocent. A court will decide the case at trial.
If a jury convicts him, Burton faces penalties. Each wire fraud count carries up to 20 years in prison. Money laundering counts carry up to 10 years each. The unlicensed business charge carries up to five years. A federal judge will set any sentence.
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