One of the primary promoters of a US$1.8-billion global crypto fraud has pleaded guilty in U.S. federal court for his role in the scheme.
According to the plea deal, between June 2020 and January 2022, Rodney Burton — who was known as Bitcoin Rodney — provided unlicensed money transmitting services that promoted the HyperFund crypto scheme.
The scheme, which claimed it would provide investors with passive daily returns from its crypto mining activities, was actually a global fraud that took in US$1.8 billion from investors around the world.
“As part of the scheme, Burton controlled several companies that purported to offer consulting services but were in fact unlicensed money transmitting businesses,” U.S. authorities alleged. They noted that those services touted the HyperFund scheme and collected fees for handling transactions for investors buying into the scheme, which generated nearly US$7.9 million for Burton.
Now, Burton has pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
He is scheduled to be sentenced on July 23 in federal court in Maryland.
Previously, another one of the scheme’s promoters, Brenda Chunga (aka Bitcoin Beautee), pleaded guilty to wire fraud and conspiracy to commit securities fraud. Her sentencing, which was scheduled for June 29, has been pushed back to Jan. 7, 2027.
The alleged operator of the scheme, Sam Lee — an Australian living in Dubai — was charged with one count of conspiracy to commit securities fraud and one count of wire fraud. Those allegations have not been proven.