Collapse of 'Bitcoin Rodney': Organizer of HyperFund pyramid scheme pleads guilty to $1.8 billion fraud
A massive fraud in the world of cryptocurrencies is reaching its inevitable conclusion. Rodney Burton, 56, from Miami, better known in certain circles as "Bitcoin Rodney," has officially pleaded guilty in federal court. He is accused of participating in a colossal fraudulent scheme called HyperFund, which caused approximately $1.8 billion in losses to investors worldwide.
The scheme operated from 2020 to 2022. According to the investigation, Burton played a key role in laundering criminally obtained money. He created shell consulting firms through which he funneled the funds of defrauded investors, masking their true origin. "Bitcoin Rodney's" personal income from this activity amounted to at least $7.85 million.
How the HyperFund Pyramid Scheme Worked
HyperFund attracted victims with promises of fabulous profits. Investors were offered to purchase a "membership" and receive passive income ranging from 0.5% to 1% per day. The creators claimed that such payouts were backed by revenues from large-scale cryptocurrency mining. However, as in any classic financial pyramid, no mining actually existed. Payments to old investors were made solely from the money of new participants. By 2021, the scheme began to falter: the platform blocked withdrawals, and thousands of people lost access to their savings.
The Verdict and the Broader Picture
Burton now faces up to five years in prison for conspiracy. Sentencing is scheduled for July 23. This case is just the tip of the iceberg in a growing wave of cryptocurrency fraud. According to a recent report from the FBI's Internet Crime Complaint Center, losses from cryptocurrency scams reached $11.4 billion in 2025 alone. The number of complaints increased by 21% compared to 2024, totaling 181,565 reports. The average reported loss per complaint was $62,604. Particularly alarming is the rise in investment scams, which accounted for $7.2 billion in losses.
Analyst's Opinion: The HyperFund case is a classic example of how promises of "easy money" and "passive income" mask a simple financial pyramid. We see that, despite all warnings, interest in such schemes does not wane, and regulators are only beginning to catch up with the scale of the problem. Investors should remember a simple rule: if the returns look unrealistically high, it is most likely a scam.