U.S. authorities arrest "Bitcoin Rodney" for allegedly defrauding over $7 million in a fraudulent investment scheme

ChainCatcher news reports that according to charges filed by the Internal Revenue Service (IRS) on January 5, U.S. authorities have arrested and charged Rodney Burton with defrauding over $7 million through a fraudulent investment scheme. Court documents show that Burton, also known as "Bitcoin Rodney," is accused of promoting the HyperVerse cryptocurrency investment plan in Maryland.

The documents state that HyperVerse, also known as Hyperfund, HyperCapital, and HyperNation, is an illegal organization that was established around June 2020. The network of promoters for HyperFund conducted fraudulent promotions to investors and potential investors in the Maryland area and elsewhere. Burton is accused of receiving 562 wire transfers or cash checks from individuals, totaling $7,851,711. He was arrested on Friday in Florida and will be transferred to Maryland.

The HyperVerse cryptocurrency scheme has led to millions of dollars in losses for thousands of people. An investigation by the Australian Guardian last month found that the scheme was operated by an entity called HyperTech, led and run by CEO Steven Li, who, according to the newspaper, does not exist. Australian Assistant Treasurer and Minister for Financial Services Stephen Jones stated that he would inquire why the country's Securities and Investments Commission (ASIC) did not warn consumers about the HyperVerse cryptocurrency scheme like other countries did. The U.S. Department of the Treasury, IRS, and Burton's public defense team did not immediately respond to CoinDesk's request for comment.