Crypto promoter Rodney Burton, popularly often called “Bitcoin Rodney,” is dealing with new costs for his alleged position within the $1.8 billion HyperFund pyramid scheme. This growth comes nearly two years after the US Division of Justice introduced felony costs towards two of the co-founders of the crypto Ponzi scheme.
In January 2024, the US DOJ charged Xue Lee (Sam Lee) and Brenda Chunga (Bitcoin Beautee) for his or her roles in HyperFund. Based on the prosecutors, the founders falsely claimed that the scheme’s buyers would obtain substantial returns paid from non-existent crypto mining operations.
The fraudulent scheme, which additionally drew the eye of the US Securities and Trade Fee (SEC), collapsed in 2022, leaving buyers unable to withdraw their cash. The SEC filed a civil motion towards the founders, stating that HyperFund lacked any actual income supply other than buyers’ funds.
US DOJ Provides Wire Fraud Cost To HyperFund’s Promoter
On Friday, December 12, the US Legal professional’s Workplace for the District of Maryland introduced new indictment costs towards 56-year-old Burton for actively selling the fraudulent HyperFund scheme. The brand new costs embody conspiracy to commit wire fraud, two counts of wire fraud, seven counts of cash laundering, and one rely of working an unlicensed cash transmitting enterprise.
The 56-year-old crypto promoter, who was initially dealing with two counts associated to unlicensed cash transmission, is now staring down at a protracted jail sentence if discovered responsible on all counts; a most of 20 years in federal jail for the wire fraud conspiracy and every wire fraud rely, 10 years for every cash laundering rely, and 5 years for the unlicensed cash transmission enterprise.
The superseding indictment additionally accused Burton of misappropriating buyers’ funds within the buy of luxurious condominium properties, sports activities vehicles, and a yacht. The crypto influencer managed to construct a crypto group following whereas internet hosting varied celebrities, together with Akon, Jamie Fox, and Rick Ross.
Based on court docket filings, Burton claimed that he was made to imagine that he was working a official enterprise, inflicting him to mislead buyers. The crypto influencer’s trial is predicted to begin by March 2026.
Crypto Market At A Look
As of this writing, the overall cryptocurrency market is valued at round $3.05 trillion, reflecting a 0.2% leap prior to now 24 hours.
Complete crypto market cap on the day by day timeframe | Supply: TOTAL chart on TradingView
Featured picture from Slaferek Regulation, chart from TradingView
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