Bitcoin Rodney’ Claims He Was Duped as Legal Team Seeks Release in $3B HyperVerse Fraud Case

Rodney Burton, the American cryptocurrency promoter known as “Bitcoin Rodney”, is seeking release from US custody after claiming he was unknowingly drawn into a global US$3 billion (AU$4.62 billion) Ponzi scheme operated by Australian entrepreneur Sam Lee. 

Burton faces charges for promoting HyperVerse and HyperFund, which allegedly defrauded investors of US$1.89 billion (AU$2.91 billion) worldwide, and his lawyers insist he acted in good faith while endorsing the schemes.

Court documents filed in Maryland assert that Burton performed “extraordinary due diligence” before promoting the projects, including trips to Hong Kong and Dubai, where he met Lee and visited offices presented as legitimate corporate headquarters. 

The memorandum emphasises that these offices and associated infrastructure were part of an “elaborate deception” devised by Lee to mislead both investors and Burton himself. Photographs submitted in the filing show Burton alongside Lee at what was claimed to be the Dubai HyperFund office.

Burton’s legal team also argues that political developments since his arrest support his release. They note that Donald Trump favours civil oversight of digital assets, suggesting a shift in regulatory priorities that could influence the handling of Burton’s case. Burton has spent 22 months in pretrial detention, and the motion urges that his “traditional right to freedom before conviction” be restored. His trial is scheduled for March 2026.

Related: Scammers Exploit Australia’s Cybercrime Hotline to Impersonate Police and Steal Crypto

Origins of Hyperverse

The HyperVerse schemes, operated under various names including HyperFund, HyperCapital, HyperNation, and HyperVerse, were promoted through lavish social media posts and online events, offering investors daily returns from supposedly large-scale crypto mining that never existed. 

Celebrity endorsements and actors posing as executives helped create an illusion of legitimacy. The projects targeted audiences worldwide, particularly in Africa, Asia, the US, and Australia, despite multiple warnings from financial regulators across the globe.

Burton’s case highlights the complexity of prosecuting international cryptocurrency schemes, where promoters may be both victims and alleged participants. 

While Lee faces criminal and civil charges in the US, the whereabouts and involvement of other key figures, including co-founder Ryan Xu, remain less clear, underscoring the challenges authorities face in untangling the sprawling HyperVerse network.

Related: UK Formally Recognises Crypto as Property in Landmark Digital Assets Act