"Bitcoin Rodney" pleaded guilty in the case of a giant $1.8 billion crypto pyramid scheme: details of the HyperFund scheme
A prominent cryptocurrency promoter from Miami, known by the pseudonym "Bitcoin Rodney," has officially pleaded guilty in federal court. 56-year-old Rodney Burton, whose real name has long been familiar in the crypto community, turned out to be a key link in the grandiose HyperFund fraudulent scheme, which operated from 2020 to 2022. According to investigators, the damage caused by this platform's activities exceeded $1.8 billion, with investors affected worldwide.
How the HyperFund "Financial Pyramid" Worked
HyperFund attracted victims with promises of passive income ranging from 0.5% to 1% per day. According to the organizers' plan, by purchasing a "membership," investors were supposed to double or triple their initial deposit. As a cover for such fantastic returns, a legend about highly profitable cryptocurrency mining was used. In reality, as the investigation found, no actual mining activity existed.
The scheme operated on the classic principle of a financial pyramid (Ponzi scheme): money from new participants went to pay "profits" to old ones. By 2021, when the influx of new funds slowed down, the platform began blocking withdrawals, and thousands of investors lost access to their capital. Burton, for his part, acted as a financial consultant, but in reality, his companies served merely as channels for laundering and transferring investor funds. He personally extracted at least $7.85 million from this fraud.
Sentence and Context: Crypto Fraud on the Rise
Burton now faces up to five years in prison on conspiracy charges. Sentencing is scheduled for July 23. The case is being handled by District Judge Richard Bennett.
This case is just the tip of the iceberg. The scale of cryptocurrency fraud continues to grow at an alarming rate. According to the latest data, losses from crypto scams in 2025 have already reached $11.4 billion. The number of complaints filed with law enforcement agencies exceeded 181,000, which is 21% more than the previous year. Meanwhile, the average reported loss per complaint is $62,604. Particularly concerning is the fact that over $7.2 billion of this amount comes specifically from investment scams — classic schemes similar to HyperFund.
Expert Opinion: The "Bitcoin Rodney" case is not just the story of one fraudster. It is a vivid illustration of how, even in the era of decentralized finance and transparent blockchains, age-old Ponzi schemes continue to thrive, disguised as innovative crypto projects. Investors should learn the main lesson: promises of guaranteed and ultra-high returns are almost always a red flag, behind which lies the loss of all investments.