DOJ Unmasks $7.8M Crypto Fraud Scheme Linked to Bitcoin Rodney

Crypto's dark underbelly strikes again—this time with a $7.8M price tag.

The DOJ just dropped the hammer on an alleged scam tied to the infamous 'Bitcoin Rodney,' proving even crypto's wild west has its wanted posters.

How it worked? Classic smoke-and-mirrors—promises of sky-high returns, whispers of insider access, and enough technical jargon to fog a Bloomberg terminal. The only thing decentralized here was the victims' money.

Lesson for 2025? Ponzi schemes wear hoodies now. And yes, they still take your money.

In Brief

• Rodney Burton, aka “Bitcoin Rodney”, is being prosecuted by U.S. federal authorities for wire fraud and money laundering.
• He is accused of promoting HyperFund, a crypto investment program suspected of operating as a Ponzi scheme.
• Between June 2020 and February 2022, Burton allegedly received more than $7.8 million directly from investors.
• Prosecutors claim the promised returns were not based on real activity but on new entrants’ deposits.

Suspicious Flows and Illusory Promises

While crypto trading volumes collapse on the crypto market, Rodney Burton finds himself at the center of a major federal case, accused of actively participating in a presumed pyramid scheme known as HyperFund, later renamed HyperVerse.

According to the U.S. Department of Justice, he allegedly received on his personal account more than $7.8 million between June 2020 and February 2022, coming directly from investors’ deposits. These investors were encouraged to buy investment packages supposedly generating up to 1 % daily returns.

However, according to the charges, these promised gains were neither supported by real economic activity nor generated from blockchain-related income or an identifiable financial product. “It is a Ponzi scheme in its most classic structure”, prosecutors state.

The case files reveal the use of funds fueling suspicions of aggravated fraud. A large portion of the amounts received was redistributed or used without clear economic justification. According to federal investigators, Rodney Burton allegedly :

• Transferred $1.2 million to a business partner ;
• Paid about $920,000 to recruiters involved in the program ;
• Used funds to buy a Rolls Royce and other undocumented personal expenses ;
• Failed to demonstrate that these flows served any commercial activity.

In light of the on-chain data, prosecutors added in December a formal wire fraud charge, in addition to money laundering and participation in a massive fraudulent system. If found guilty, Burton faces several decades in federal prison.

An Influencer Under the Spotlight of Justice

Rodney Burton is not a mere passive participant in the HyperFund project. Well-known in the crypto world, he enjoyed significant notoriety, notably through past collaborations with celebrities like Jamie Foxx or Rick Ross.

He presented himself as a financial educator and used his image to massively promote HyperFund through social media and public events. Authorities claim that his position made him a central recruitment vector, attracting many investors seduced by his promises and lifestyle.

The prosecution argues that Burton was aware of the program’s true nature and continued to promote it despite the lack of tangible evidence of a viable business model. His involvement therefore goes beyond simple promotion.

He reportedly was a structuring element of the system’s expansion strategy, recruiting other ambassadors and structuring a paid recruiter distribution chain. This proactive role is now a key element of the investigation and justifies the increase in charges against him.

The Burton case adds to a series of prosecutions targeting controversial figures in the crypto sphere. After the 15 years in prison for Do Kwon, found guilty of massive fraud, U.S. justice seems determined to establish clear responsibilities in the sector’s abuses. The upcoming trial will say whether “Bitcoin Rodney” will follow the same path.

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