$1.8B HyperFund Fraud — Florida Man Pleads Guilty
By John Nada·Jun 18, 2026·3 min read
Rodney Burton, known as 'Bitcoin Rodney', pleads guilty to promoting the $1.8 billion HyperFund fraud. Sentencing slated for July.
Rodney 'Bitcoin Rodney' Burton, a 56-year-old resident of Florida, has pleaded guilty in federal court for his role in operating an unlicensed money-transmitting business connected to the $1.8 billion HyperFund fraud. This plea marks a pivotal development in one of the most significant crypto fraud schemes in recent history, drawing comparisons to notorious cases like OneCoin and BitConnect, which have caused billions in investor losses.
The U.S. Attorney for the District of Maryland, Kelly O. Hayes, and agents from the Washington Internal Revenue Service Criminal Investigation unit and Homeland Security Investigations, New York, announced Burton's guilty plea. Burton's involvement in promoting HyperFund, a global wire-fraud operation, involved deceitful promises of daily passive returns ranging from 0.5% to 1%, claiming these payouts were derived from crypto-mining revenues that did not exist.
Between June 2020 and January 2022, Burton enriched himself with at least $7.8 million from investors' funds. Federal prosecutors have stated that Burton controlled several companies that purported to offer consulting services, through which he funneled the illicit proceeds. These companies were part of the facade used to lure thousands of investors worldwide.
The HyperFund scheme, which has impacted thousands, is reminiscent of other Ponzi-style collapses in the crypto space. OneCoin, for example, took over $4 billion from investors, while BitConnect is estimated to have caused over $2 billion in losses. These schemes have repeatedly demonstrated the vulnerabilities within the crypto industry, often exploiting the lack of regulation and the anonymity it can afford.
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In January 2024, federal prosecutors in Maryland announced charges against two other individuals implicated in the scheme. These individuals include Sam Lee, a 35-year-old Australian, who is purportedly a co-founder of HyperFund, and Brenda Chunga from Maryland. Both face charges of conspiracy to commit securities fraud and wire fraud.
Chunga's sentencing has been delayed multiple times, with the latest scheduling set for June 29. Lee, however, has not yet been convicted of any charges. The involvement of multiple individuals across different jurisdictions highlights the international reach and complexity of the HyperFund operation.
The HyperFund scheme underwent several rebranding efforts throughout its existence, initially launched as HyperCapital in January 2022. It was later rebranded as HyperFund, and after multiple iterations, the scheme eventually collapsed in November 2022. These rebranding efforts were likely attempts to evade regulatory scrutiny and maintain investor confidence as the fraudulent operation continued.
Burton's sentencing is scheduled for July 23, where he faces a maximum sentence of five years in federal prison for the conspiracy to operate an unlicensed money-transmitting business. This potential sentence underscores the gravity of the charges and serves as a stark reminder of the legal consequences of participating in such fraudulent activities.
The HyperFund case highlights the recurring nature of Ponzi-style schemes in the crypto space and the systemic failures that leave a trail of shattered investor trust. It serves as a sobering reminder of the risks associated with unregulated financial ventures and the importance of due diligence for investors. The case also emphasizes the need for increased regulatory oversight and enforcement to protect investors from similar fraudulent schemes in the future.