Crypto Promoter Rodney Burton Arrested, Charges Include Unlicensed Money Transmission
Crypto promotor Rodney Burton has been arrested and charged in the US, according to a report by The Guardian. Court documents state that Burton was a member of a network that provided investors and potential investors with “fraudulent promotional presentations”.
Crypto Advocate Rodney Burton taken into custody in the U.S.
Rodney Burton, also known as “Bitcoin Rodney,” was taken into prison on Friday while being held pending his transfer to Maryland, the state in which the charges were filed. He is accused of running an unauthorized money transmission business, according to The Guardian’s report.
The US Internal Revenue Service (IRS) asserts in court filings that a group of Hyper scheme promoters produced “fraudulent promotional presentations” for a purportedly nonexistent investment firm that made money through bitcoin mining.
This is the first time charges have been laid against anyone involved in the HyperVerse scheme, according to The Guardian.
Burton’s possible links to Australia’s Blockchain Global
According to an investigation conducted by The Guardian, the links of the scheme which involves Burton are connected to the directors of Blockchain Global. Blockchain Global was an Australian blockchain startup that failed after owing creditors $58 million.
Online marketing materials for the Hyper plans notably featured two directors of Blockchain worldwide, Sam Lee and Ryan Xu, who both spoke at the HyperVerse worldwide launch event in December 2021.
Regulators in Australia did not notice HyperVerse’s plans despite several consumer alerts from global banking agencies.
The Guardian in its report said that The Australian Securities and Investments Commission (ASIC) has received a referral about possible violations of the Corporations Act from Lee and Xu. However, ASIC has stated that it does not currently have any plans to pursue enforcement action.
Crypto scams rise in 2023
CoinGape previously reported that the year-to-date (YTD) total for cryptocurrency scams, hacks, and exploits in 2023 had risen to an astounding $1.35 billion following a string of losses in October 2023. This substantial amount highlights the ongoing difficulties and weaknesses in the cryptocurrency sector.
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