Overview
- Rodney “Bitcoin Rodney” Burton admitted on Monday to conspiring to operate an unlicensed money‑transmitting business that prosecutors say helped fuel the roughly $1.8–$1.89 billion HyperFund fraud.
- Federal filings say Burton personally received at least $7.8 million from the scheme and that he used networks of consulting companies to move investor funds into the operation.
- Prosecutors describe HyperFund as a multi‑level marketing‑style fraud that sold membership tiers, promised daily returns of 0.5%–1% allegedly from crypto mining that never existed, and began blocking withdrawals by 2021 before collapsing in late 2022.
- Parallel cases continue: promoter Brenda Chunga is awaiting sentencing on June 29, 2026, co‑founder Xue “Sam” Lee remains charged but not convicted, and Burton faces up to five years in prison at his July 23 hearing.
- The plea strengthens coordinated DOJ, IRS‑CI, HSI and SEC enforcement targeting promoters and raises practical questions about investor recovery after authorities say proceeds were diverted into real estate, vehicles and a yacht.