U.S. federal prosecutors have escalated their case against crypto promoter Rodney “Bitcoin Rodney” Burton, accusing him of masterminding the $1.8 billion HyperFund investment fraud in one of the largest alleged crypto scams to date.
Key Takeaways:
- Federal prosecutors charged Rodney Burton with 11 criminal counts tied to the HyperFund and HyperVerse schemes, including wire fraud conspiracy and money laundering, potentially carrying decades in prison.
- Authorities allege the scheme promised guaranteed daily returns to investors worldwide while misrepresenting crypto mining operations and blocking withdrawals as early as 2021.
- Limited reaction were seen in the broader crypto market despite the high-profile indictment, with BTC and ETH trading in small intraday movements.
The U.S. Department of Justice has filed a superseding indictment against Rodney Burton, a Miami-based crypto influencer known online as “Bitcoin Rodney,” significantly expanding earlier charges related to the collapse of HyperFund. According to federal court documents, prosecutors now accuse Burton of leading a multi-year wire fraud conspiracy that solicited billions from investors across the globe under the guise of a legitimate crypto investment opportunity.
The indictment, returned by a grand jury in the District of Maryland, alleges that Burton and his associates promoted HyperFund as a high-yield cryptocurrency platform backed by large-scale mining operations. Investors were told they could earn between 0.5% and 1% in daily rewards, a claim prosecutors say had no factual basis. Authorities allege that rather than generating profits through blockchain infrastructure, the platform relied on new investor deposits to pay earlier participants.
How the HyperFund Scheme Allegedly Operated
According to the DOJ, HyperFund launched in mid-2020 and rapidly expanded through aggressive online marketing and referral incentives. Burton allegedly positioned himself as the public face of the platform, hosting promotional events and livestreams that encouraged participants to reinvest rewards and recruit new members into the system.
By early 2021, prosecutors say warning signs began to emerge. Withdrawal requests were allegedly delayed or blocked entirely, while HyperFund continued to market itself as financially sound. The indictment claims Burton and his co-conspirators diverted investor funds for personal use, including luxury real estate, vehicles, and other high-end purchases, rather than maintaining segregated crypto wallets or legitimate mining infrastructure.
Federal authorities estimate that investor losses tied to HyperFund and related entities reached approximately $1.8 billion, placing the case among the largest alleged crypto frauds pursued by U.S. prosecutors.
Market Saw Little to No Immediate Reaction
As of this writing (10:30AM UTC), the broader crypto market showed a muted direct reaction to the news, with Bitcoin trading at approximately $90,110.56, down in a modest 0.4% in the last 24 hours with intraday range of $89,859.16 to $90,601.32, suggesting a slight volatility in today’s trading session. Ethereum (ETH) follows the same pattern with its 0.8% drop in the day as it trades near $3,104.97, with intraday range of $3,090.92 to $3,132.93 as per CoinGecko.
Market analysts note that enforcement actions against fraudulent platforms tend to have a muted effect on major digital assets unless they involve systemic risks to large crypto exchanges or core infrastructure. Instead, sentiment continues to be shaped primarily by macroeconomic conditions, institutional flows, and regulatory clarity around spot ETFs and crypto portfolio allocations.
What’s Next
The HyperFund prosecution adds to a growing wave of enforcement against fraudulent crypto yield schemes. Experts say Burton’s trial could set a precedent for how regulators handle platforms promising fixed returns in cryptocurrency systems. As proceedings unfold, investors and industry participants will monitor potential asset forfeitures, additional defendants, and further disclosures. While immediate market impact is limited, the case reinforces that misleading claims and misuse of investor funds in the crypto sector face serious criminal scrutiny.
Summary
Federal prosecutors have expanded charges against Rodney “Bitcoin Rodney” Burton, accusing him of orchestrating the $1.8B HyperFund fraud; the superseding indictment alleges wire fraud, money laundering and other offenses while markets showed muted reaction.
