TheBlock
Rodney "Bitcoin Rodney" Burton, a Miami crypto promoter, pleaded guilty in federal court for his role in the $1.8 billion HyperFund fraud scheme that operated between 2020 and 2022. Burton admitted under a plea agreement to conspiring to provide unlicensed money-transmitting services while promoting HyperFund, and to routing investor funds through entities presented as consulting firms that functioned as payment conduits. He received at least $7,851,711 in proceeds linked to the operation, the U.S. Attorney's Office for the District of Maryland said Wednesday.
HyperFund's promotional materials claimed investors who purchased "memberships" would receive between 0.5% and 1% daily in passive rewards until the company either doubled or tripled their initial investment. The platform cited revenue from large-scale crypto mining operations to justify the payouts; prosecutors said no such operations existed. Withdrawals were blocked beginning in 2021 as the scheme progressed.
Why it matters
Burton now faces a statutory maximum of five years in federal prison on the conspiracy charge, with sentencing scheduled for July 23 before U.S. District Judge Richard D. Bennett. The plea lands roughly a week after the FBI's Internet Crime Complaint Center reported that crypto-related fraud losses reached a record $11.4 billion in 2025, with 181,565 complaints filed — a 21% year-over-year increase and an average reported loss of $62,604. Investment scams accounted for $7.2 billion of those losses across 61,559 complaints, a category HyperFund-style Ponzi schemes dominate.
Market impact
Promoter-level prosecutions are now the more common enforcement surface in US crypto fraud cases — the operators behind these schemes are often overseas and unreachable, leaving US-based recruiters as the DOJ's practical lever. A five-year maximum for an individual who pocketed $7.8M is a lighter penalty than the headline suggests, but the plea agreement itself gives prosecutors a usable template for the remaining HyperFund-affiliated promoters.
Frequently asked questions
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Who is Rodney 'Bitcoin Rodney' Burton?
A Miami crypto promoter who pleaded guilty in federal court for his role in the $1.8 billion HyperFund scheme, admitting he conspired to provide unlicensed money-transmitting services and pocketed at least $7,851,711 in proceeds.
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How did the HyperFund scheme work?
HyperFund sold "memberships" promising 0.5% to 1% in daily passive rewards until the company doubled or tripled the initial investment, claiming the returns were funded by large-scale crypto mining. Prosecutors say no such mining operations existed, and withdrawals were blocked starting in 2021.
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What sentence does Burton face?
Burton faces a statutory maximum of five years in federal prison on the conspiracy charge. Sentencing is scheduled for July 23 before U.S. District Judge Richard D. Bennett in the District of Maryland.
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How large are US crypto fraud losses right now?
The FBI's Internet Crime Complaint Center reported a record $11.4 billion in crypto-related fraud losses in 2025, with 181,565 complaints filed — a 21% increase from 2024 and an average reported loss of $62,604.
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What share of crypto fraud is investment scams?
Investment scams accounted for $7.2 billion of the FBI's $11.4 billion 2025 crypto fraud total, spread across 61,559 complaints — making them the single largest category and the bucket HyperFund-style schemes typically fall into.
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