Rodney Burton, also known as “Bitcoin Rodney,” is accused of promoting a fraudulent cryptocurrency investment scheme in the United States, marking the first arrest in the HyperVerse saga. According to a report published by The Guardian, he faces charges of operating and conspiring to manage an unlicensed money transfer company.
The IRS alleges in court documents that Burton was part of a network making “fraudulent promotions” for HyperFund, a scheme that supposedly generated revenue from mining non-existent Bitcoin. IRS documents, seen by The Guardian, reveal that Burton received more than $7.8 million from investors between June 2020 and January 2022.
HyperFund, which also operates under names such as HyperTech, HyperCapital and HyperVerse, lured investors with promises of daily bonuses of between 0.5% and 1% until their investments doubled or tripled. The affidavit claims that these payments were actually funded by new investors, resembling a classic Ponzi scheme.
The scheme collapsed in mid-2021, blocking withdrawals and leaving many with worthless ‘excess units’. Despite warnings from global authorities, regulators in Australia initially got it wrong.
Links to Australian Blockchain Company
An investigation by The Guardian claims to have uncovered ties between HyperVerse and Australian businessman Sam Lee and his partner Ryan Xu, whose company Blockchain Global faced $58 million in debt. Although Lee and Xu appear prominently in promotional materials for HyperVerse, they have denied their involvement.
In a video clip featuring Burton, Shaw expressed his ambitions to “change the world” and build a billion-strong “army” to control the financial system. Burton, who is known for flaunting his wealth on social media, described the plan as “very exciting”.
Further investigations are pending
Burton’s arrest represents an important step toward accountability in the HyperVerse case. While neither Li nor Xu have currently been charged, regulators in Australia are investigating their possible role in Blockchain Global’s collapse.
This rewritten article retains essential information while condensing it and improving clarity. It focuses on Burton’s arrest, the IRS allegations, and the workings of the scheme. In addition, it highlights Australian links and ongoing investigations, providing a more concise and focused account.
The IRS alleges in court documents that Burton was part of a network making “fraudulent promotions” for HyperFund, a scheme that supposedly generated revenue from mining non-existent Bitcoin. IRS documents, seen by The Guardian, reveal that Burton received more than $7.8 million from investors between June 2020 and January 2022.
HyperFund, which also operates under names such as HyperTech, HyperCapital and HyperVerse, lured investors with promises of daily bonuses of between 0.5% and 1% until their investments doubled or tripled. The affidavit claims that these payments were actually funded by new investors, resembling a classic Ponzi scheme.
The scheme collapsed in mid-2021, blocking withdrawals and leaving many with worthless ‘excess units’. Despite warnings from global authorities, regulators in Australia initially got it wrong.
Links to Australian Blockchain Company
An investigation by The Guardian claims to have uncovered ties between HyperVerse and Australian businessman Sam Lee and his partner Ryan Xu, whose company Blockchain Global faced $58 million in debt. Although Lee and Xu appear prominently in promotional materials for HyperVerse, they have denied their involvement.
In a video clip featuring Burton, Shaw expressed his ambitions to “change the world” and build a billion-strong “army” to control the financial system. Burton, who is known for flaunting his wealth on social media, described the plan as “very exciting”.
Further investigations are pending
Burton’s arrest represents an important step toward accountability in the HyperVerse case. While neither Li nor Xu have currently been charged, regulators in Australia are investigating their possible role in Blockchain Global’s collapse.
This rewritten article retains essential information while condensing it and improving clarity. It focuses on Burton’s arrest, the IRS allegations, and the workings of the scheme. In addition, it highlights Australian links and ongoing investigations, providing a more concise and focused account.