Pretrial Detention Upheld for HyperFund Promoter Rodney Burton in Cryptocurrency Fraud Case
On Tuesday, July 9, 2024, the United States District Court for the District of Maryland denied a motion to review the pretrial detention order for Rodney Burton, who is accused of running an unlicensed cryptocurrency money transmitting business.
Burton, who also goes by “Bitcoin Rodney”, was indicted in February 2024 on charges of operating an unlicensed money transmitting business and conspiracy related to his role in HyperFund, an alleged cryptocurrency investment scheme. According to court documents, HyperFund promoted itself as a decentralized finance platform, but prosecutors said it essentially operated as a Ponzi scheme by accepting hundreds of wire transfers and checks totaling over $7 million from investors in exchange for worthless cryptocurrency.
Burton has been in pretrial detention since his arrest at Miami International Airport in January 2024 while attempting to board a flight to Dubai, United Arab Emirates with a one-way ticket. At a detention hearing shortly after his arrest, a federal magistrate judge ordered Burton detained, citing concerns that he posed a serious risk of flight given his access to significant financial assets and the strength of evidence against him in the case.
In his July 9 ruling, Senior U.S. District Judge Richard Bennett conducted a de novo review of the detention order and ultimately affirmed the lower court’s decision. The Judge noted that in a recorded phone call from late 2023, Burton expressed his intent to move and do business in Dubai to avoid investigation by U.S. authorities. Combined with his arrest at the airport with one-way travel plans, the Judge found Burton posed an “extreme flight risk.”
The Court also considered Burton’s prior drug conspiracy conviction and the serious nature and strong evidence related to the unlicensed money transmitting charges. As a result, the Judge concluded no release conditions would reasonably assure Burton’s appearance at future proceedings. Burton will now remain in pretrial detention pending the resolution of his criminal case.
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