Rodney Burton, known as “Bitcoin Rodney,” was arrested following allegations of fraudulent promotional presentations to investors within a scheme that claimed to generate returns through Bitcoin mining. The U.S. Internal Revenue Service (IRS) revealed that the investment firm in question was fictitious.
The Guardian report highlighted that this is the first time an individual involved in the HyperVerse project has faced charges. Burton is currently awaiting transfer to Maryland, the state where the charges were filed.
Investigations into Burton’s activities uncovered connections with the executives of Blockchain Global, an Australian blockchain company that collapsed owing creditors $58 million.
Two notable figures, Sam Lee and Ryan Xu, executives of the defunct Blockchain project, were highlighted for their involvement in marketing schemes for Hyper plans, including a major launch event for HyperVerse in December 2021.
Despite global banking institutions’ warnings, Australian regulators were slow to respond to the activities of HyperVerse. The Australian Securities and Investments Commission (ASIC) is now collecting submissions on potential breaches of the Corporations Act by Lee and Xu but has yet to plan any sanctions.