Federal prosecutors in the United States have filed a superseding indictment against crypto promoter Rodney Burton, widely known as “Bitcoin Rodney”, expanding the case linked to the alleged $1.8 billion HyperFund investment scheme.
The new indictment, submitted by the U.S. Attorney’s Office for the District of Maryland, adds multiple charges including conspiracy to commit wire fraud, two counts of wire fraud, seven counts of money laundering, and operating an unlicensed money transmitting business.
Burton, aged 56, now faces a potential sentence of up to 20 years in prison for each wire fraud count, up to 10 years for each money laundering count, and up to five years for the unlicensed money transmission charge.
The escalation represents a significant increase from the original January 2024 complaint, which contained only two unlicensed money transmission counts carrying a maximum of five years each.
Burton was arrested in January at Miami International Airport while holding a one-way ticket to the United Arab Emirates, a detail prosecutors cited as evidence of flight risk.
A federal judge denied him bail, describing Burton as an “extreme flight risk,” and he has remained in custody since his arrest.
According to the indictment, HyperFund, also marketed as HyperVerse, operated between June 2020 and May 2024 and was promoted as a crypto investment platform offering daily returns of between 0.5% and 1%.
Prosecutors allege investors were told returns would continue until their initial deposits doubled or tripled, supported by claims of large-scale crypto mining operations.
Federal authorities say those mining operations never existed and that the platform relied on funds from new participants to pay earlier investors.
Court filings state HyperFund began restricting withdrawals in 2021 as complaints from users increased.
Prosecutors allege Burton used investor funds to purchase luxury homes, high-end vehicles, and a yacht.
Burton became one of HyperFund’s most recognisable promoters, hosting a high-profile 2021 Miami event featuring Daymond John and Akon.
He also appeared online alongside celebrities including Jamie Foxx and Rick Ross, according to court documents.
The case has already resulted in one guilty plea after promoter Brenda Chunga, known as “Bitcoin Beautee”, admitted her role in promoting the scheme.
Alleged co-founder Xue “Sam” Lee remains at large, with prosecutors describing him as central to the structure and messaging of HyperFund.
Burton has argued in court filings that he believed HyperFund was legitimate and that he was misled by Lee, who he claims orchestrated an elaborate deception.
Prosecutors dispute that claim, asserting Burton knowingly promoted returns that lacked any operational basis.
Burton’s trial is scheduled for March next year, with the outcome expected to influence how U.S. authorities pursue large-scale crypto payout schemes.