Miami crypto promoter Rodney Burton, known as "Bitcoin Rodney," pleaded guilty in federal court to participating in the $1.8 billion HyperFund fraud scheme. The platform operated from 2020 to 2022 and defrauded investors around the world.

As the US Attorney's Office for the District of Maryland reported, the 56-year-old Burton, under a plea agreement, confirmed that he took part in a conspiracy to operate an unlicensed money transmitting business while promoting HyperFund. He moved investor funds through companies that posed as consulting firms but in reality served as channels for transferring money. Burton personally received at least $7.85 million in income connected to this scheme.

Want more exclusive news and analysis? Subscribe to our Telegram channel, discuss the news and share your thoughts on the latest market events in the chat!

How HyperFund operated

According to the prosecution's statement, HyperFund's promotional materials promised investors who purchased a "membership" passive income of 0.5% to 1% per day until their initial deposits doubled or tripled. To justify such payouts, the platform pointed to revenue from large-scale cryptocurrency mining.

However, according to prosecutors, no mining operations actually existed. New investors' money went to pay earlier ones, which is typical of a Ponzi scheme. In 2021, as the scheme developed, the platform began blocking withdrawals, and many participants lost access to their money.

What Burton faces

Burton now faces a maximum sentence of five years in prison on the conspiracy charge. Sentencing is scheduled for July 23. The case is being handled by District Judge Richard Bennett.

Source: BeInCrypto