Rodney Burton, widely known as “Bitcoin Rodney,” began his journey in Washington, D.C., as an entrepreneur with a flair for marketing and business development.
However, his encounter with the broader world of ‘digital assets’ marked the start of a controversial chapter filled with fraudulent schemes.
Rodney Burton’s arrest for drug dealing occurred before he became known as “Bitcoin Rodney.” He was heavily involved in the drug trade, which led to his arrest and subsequent conviction.
In the early 2000s, Burton was caught and charged with trafficking drugs, resulting in a 60-month prison sentence. He served his full term and was released on August 4, 2010.
In addition to his criminal activities, Rodney Burton also faced allegations of falsifying academic credentials. He claimed to have degrees and qualifications that he did not possess, using these fake credentials to gain credibility and trust in various business circles.
This pattern of deception extended into his later ventures, where he leveraged these false claims to attract investors and collaborators.
Rodney’s association with the ‘digital asset’ world soon devolved into a series of fraudulent activities. His most notorious involvement was with HyperFund, a platform that falsely promised high returns from non-existent digital asset mining operations.
Rodney, alongside co-conspirators Sam Lee and Brenda Chunga, allegedly misled investors, amassing nearly $1.89 billion through deceptive practices.
Rodney was involved in several controversial ‘crypto’ schemes before HyperFund. These include:
- USI Tech: A notorious Ponzi scheme where Burton was a prominent promoter. USI Tech promised high returns through bitcoin trading and mining but collapsed, leaving many investors with significant losses.
- Eyeline Trading: Another Ponzi scheme where Burton was involved, promoting unrealistic returns on small investments.
- WealthBoss: Promoted by Burton, this scheme also promised substantial profits through digital asset investments but was another fraudulent venture.
From June 2020 to November 2022, Rodney and his associates aggressively marketed HyperFund, claiming that investors could earn substantial passive rewards.
However, HyperFund lacked any legitimate mining operations, and by mid-2021, it began blocking investor withdrawals. The scheme was characterized by deceptive promises and misleading promotional materials, which ultimately led to significant financial losses for investors.
Burton is also famous for flaunting his wealth on social media. He has been seen buying a $350,000 Lamborghini with bitcoin and often showcases his luxurious lifestyle in various posts and videos.
His presence at lavish and prestigious parties, often involving other prominent figures in the ‘digital asset’ world, further emphasizes his larger-than-life persona.
In January 2024, Rodney was arrested and charged with conspiracy to operate an unlicensed money-transmitting business.
Facing serious legal consequences, he was detained, highlighting the significant impact of his fraudulent activities. Co-conspirator Brenda Chunga pleaded guilty and agreed to restitution, while Sam Lee faced similar charges.
“Co-conspirator Rodney Burton, a/k/a “Bitcoin Rodney,” 54, of Miami, Florida, is charged by criminal complaint for his role as an alleged promoter of HyperFund. Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, pleaded guilty today to her role in the fraud scheme.”
Source: Justice.gov
The arrest of Rodney Burton is part of a broader investigation into fraudulent schemes involving ‘digital assets’.
Many victims reported that they were promised up to 300% returns on their investments through platforms like HyperFund, which later rebranded to HyperVerse and HyperNation.
Despite initial returns, withdrawals were blocked, and the platform’s promises were never fulfilled. These reports were corroborated by victim testimonies and regulatory investigations, revealing the extent of the scam and the deceptive tactics used to lure investors.
The case against Burton is still ongoing, and he is in custody awaiting trial. His arrest in Florida and subsequent transfer to Maryland, where the charges were filed, marks the end of his fraudulent activities.
Rodney Burton’s actions not only defrauded countless investors but also tarnished the image of Bitcoin. As his legal proceedings continue, they serve as a cautionary tale for anyone venturing into the world of ‘crypto’ investments.
