US authorities arrest ‘Bitcoin Rodney’ Burton for alleged $7 million HyperVerse crypto fraud
Posted: January 9, 2024 11:01 AM Updated: January 9, 2024 11:01 AM
Correction and fact check date: January 9, 2024, 11:01 AM
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HyperVerse’s alleged promoter, Rodney Burton, was arrested in Maryland and accused of defrauding the company of more than $7 million through a bogus investment scheme.
US authorities have arrested and charged Rodney Burton, also known as ‘Bitcoin Rodney’, the alleged promoter of the HyperVerse cryptocurrency project. He is accused of defrauding people of more than $7 million through a bogus investment scheme.
The charges were filed with the Internal Revenue Service (IRS) on January 5, and Burton was arrested in Florida on Friday.
HyperVerse, which operates under various names including Hyperfund, HyperCapital, and HyperNation, was an unincorporated organization formed around June 2020. The organization reportedly falsely claimed that investors who purchase a ‘membership’ would earn daily passive rewards ranging from 0.5% to 1%. This continues until the HyperFund doubles or triples the investor’s initial investment.
“A network of HyperFund promoters in Maryland and elsewhere made deceptive promotional presentations to investors and potential investors.”
Andrew J. Accardi said in the filing that he was a special agent with the IRS Criminal Investigation Division.
Specifically, Burton received 562 wire transfers or checks made personally from individuals, totaling $7,851,711.
The HyperVerse cryptocurrency scheme caused thousands of individuals to lose millions of dollars. The operation was run by a company called HyperTech, promoted and overseen by its seemingly non-existent CEO, Steven Reece Lewis.
The increasing frequency of fraudulent activity in cryptocurrency-related projects is a growing concern for investors and the industry at large as authorities intensify their investigations and responses.
Recently, YouTube and social media influencer Logan Paul announced plans to refund $2.3 million to certain investors who contributed to his CryptoZoo project. The play-to-earn game was first announced and promoted in August 2021 and aimed to allow players to buy, sell, breed and trade “exotic animals” in NFTs using cryptocurrency. But it was never released.
In addition to the refund, the influencer filed a cross-claim lawsuit against CryptoZoo lead developers Eduardo Ibanez and Jake Greenbaum in February 2023 in response to an earlier lawsuit filed by the participant. The participant claimed that the CryptoZoo team was involved in “fraudulent conduct.” ”
Amid the rise in fraud in cryptocurrency-related projects, Rodney Burton’s arrest highlights the need for heightened vigilance. As the investigation progresses, the cryptocurrency industry will come under greater scrutiny as it exposes the problems posed by fraudulent ventures.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles