Bitcoin Rodney Arrested: Alleged HyperVerse Crypto Scheme Ends in Fraud Charges

• U.S. Authorities Arrest Rodney Burton for Allegedly Running a Crypto Fraud Worth Over $7 Million
• About HyperVerse Crypto Scheme
• Burton's Arrest and Consequences
• The Aftermath of HyperVerse Crypto Scheme
• Australian Government Response
• Response from U.S. Treasury, IRS and Burton's Defense Team

U.S. Authorities Arrest Rodney Burton for Allegedly Running a Crypto Fraud Worth Over $7 Million

The U.S. Internal Revenue Service (IRS) reported on January 5, that Rodney Burton was arrested and charged for allegedly defrauding over $7 million through a false investment scheme. Known in the industry as Bitcoin$42,260 -0.64% Rodney, Burton was charged in Maryland for allegedly promoting the HyperVerse crypto investment scheme, as seen in court documents.

About HyperVerse Crypto Scheme

According to court filings, HyperVerse, also known as Hyperfund, HyperCapital, and HyperNation, was an unincorporated organization established in June 2020. Allegedly, a network of HyperFund promoters in the District of Maryland and beyond made fraudulent promotional presentations to investors and potential investors.

The court document filed by Andrew J. Accardi, a special agent with the IRS's Criminal Investigations department, states that HyperFund falsely promised investors daily passive rewards of between 0.5% to 1% until HyperFund doubled or tripled the initial investment. Burton, it was alleged, received 562 wire transfers or cashier's checks, amounting to $7,851,711 from individuals.

Burton's Arrest and Consequences

Burton was arrested in Florida on a Friday and is slated for transfer to Maryland.

The Aftermath of HyperVerse Crypto Scheme

A Guardian Australia investigation last month revealed that the HyperVerse crypto scheme resulted in thousands of people losing millions of dollars. The scheme was reportedly run by an entity called HyperTech and was promoted and run by its CEO, Steven Reece Lewis, who appears to be nonexistent per the newspaper's report.

Australian Government Response

Stephen Jones, Australia's Assistant Treasurer and Minister for Financial Services, has stated plans to question the country's Securities and Investments Commission (ASIC) over its failure to warn consumers about the HyperVerse crypto scheme. This is unlike what was done in other nations.

Response from U.S. Treasury, IRS and Burton's Defense Team

At the time of writing, the U.S. Treasury, IRS, and Burton's public defense team had not responded to requests for comments.

Edited by Jonathan Stoker