Key Takeaways
- • Rodney "Bitcoin Rodney" Burton, 56, of Miami, pleaded guilty on June 17, 2026, to conspiracy to operate an unlicensed money transmitting business in connection with the HyperFund cryptocurrency fraud scheme totaling $1.8 billion in victim losses.
- • HyperFund operated as a global Ponzi scheme from June 2020 to January 2022, falsely promising daily passive returns of 0.5–1% and claiming revenues from non-existent large-scale crypto-mining operations to justify unsustainable returns.
- • Burton's role as a promoter involved controlling multiple shell companies purporting to offer consulting services while actually functioning as unlicensed money transmitting businesses that funneled investor capital into the fraud.
- • Co-conspirator Brenda Chunga, 43, also known as "Bitcoin Beautee," pleaded guilty to conspiracy to commit securities fraud and wire fraud related to the same scheme, indicating coordinated organizational structure.
- • The scheme began blocking investor withdrawals in 2021, a hallmark of Ponzi scheme collapse, and defrauded victims worldwide before its January 2022 shutdown.
Summary
Rodney Burton, a 56-year-old Miami resident also known by the alias "Bitcoin Rodney," entered a guilty plea in federal court in the District of Maryland on June 17, 2026, to conspiracy to operate an unlicensed money transmitting business. His guilty plea directly relates to his role as a promoter of HyperFund, a cryptocurrency investment platform that defrauded global investors of $1.8 billion between June 2020 and January 2022.
HyperFund marketed itself as a legitimate cryptocurrency investment platform but functioned as a sophisticated Ponzi scheme. The scheme's promotional materials made multiple false claims to attract investors, including promises that purchasers of HyperFund "memberships" would receive passive daily returns between 0.5% and 1% until their initial investment doubled or tripled. To justify these unsustainable returns, HyperFund falsely claimed to operate large-scale cryptocurrency mining operations generating sufficient revenue to support the promised distributions. In reality, HyperFund possessed no such mining infrastructure. Beginning in 2021, the platform began systematically blocking investor withdrawals—a critical indicator of Ponzi scheme collapse.
According to Burton's plea agreement, he conspired to provide unlicensed money transmitting services and used investor funds to enrich himself. Burton controlled several companies that ostensibly offered consulting services but actually functioned as unlicensed money transmitting operations channeling capital through the fraudulent platform. The U.S. Attorney for the District of Maryland, Kelly O. Hayes, announced the guilty plea with support from the Internal Revenue Service–Criminal Investigation and Homeland Security Investigations.
Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, also known as "Bitcoin Beautee," pleaded guilty to conspiracy to commit securities fraud and wire fraud in connection with the same scheme, suggesting a coordinated organizational structure with multiple promoters working to recruit and defraud victims. The guilty pleas underscore ongoing federal prosecution efforts targeting cryptocurrency fraud schemes that exploit retail investor demand for high-yield investment opportunities in digital assets.
HyperFund marketed itself as a legitimate cryptocurrency investment platform but functioned as a sophisticated Ponzi scheme. The scheme's promotional materials made multiple false claims to attract investors, including promises that purchasers of HyperFund "memberships" would receive passive daily returns between 0.5% and 1% until their initial investment doubled or tripled. To justify these unsustainable returns, HyperFund falsely claimed to operate large-scale cryptocurrency mining operations generating sufficient revenue to support the promised distributions. In reality, HyperFund possessed no such mining infrastructure. Beginning in 2021, the platform began systematically blocking investor withdrawals—a critical indicator of Ponzi scheme collapse.
According to Burton's plea agreement, he conspired to provide unlicensed money transmitting services and used investor funds to enrich himself. Burton controlled several companies that ostensibly offered consulting services but actually functioned as unlicensed money transmitting operations channeling capital through the fraudulent platform. The U.S. Attorney for the District of Maryland, Kelly O. Hayes, announced the guilty plea with support from the Internal Revenue Service–Criminal Investigation and Homeland Security Investigations.
Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, also known as "Bitcoin Beautee," pleaded guilty to conspiracy to commit securities fraud and wire fraud in connection with the same scheme, suggesting a coordinated organizational structure with multiple promoters working to recruit and defraud victims. The guilty pleas underscore ongoing federal prosecution efforts targeting cryptocurrency fraud schemes that exploit retail investor demand for high-yield investment opportunities in digital assets.
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