On December 1, 2025, Rodney Burton, a top promoter in the HyperFund Ponzi scheme, filed a motion arguing he no longer poses a flight risk due to his “significantly diminished” financial status. His attorney claims luxury assets like a yacht and cars have been sold or seized, and no hidden crypto wealth has been found despite extensive DOJ subpoenas and searches, court filings.
Burton’s motion leans heavily on the April 7, 2025, Blanche Memo (“Ending Regulation by Prosecution”), which directs prosecutors to avoid charging regulatory violations in digital-asset cases unless willful knowledge of licensing requirements is proven. Burton’s team asserts he did not know HyperFund lacked proper registration under 18 U.S.C. § 1960 (unlicensed money transmitting) and reasonably relied on co-founder Sam Lee’s representations. The defense also claims Burton’s “consulting” services were legitimate, despite evidence that he instructed victims to mislabel checks to evade U.S. financial laws.
The DOJ has repeatedly rejected Burton’s “I didn’t know” defense, pointing to his active role in recruiting victims and his attempt to flee to Dubai in January 2024. During a May 2025 hearing, the court explicitly warned that Burton’s release depended on a trustworthy third-party custodian, his wife Dasha Weeks, and criticized her prior communications as “unacceptable.” Burton’s latest motion also tries to shift blame to Sam Lee and Brenda Chunga for any misrepresentations.
Burton remains detained pending trial, now scheduled for March 2, 2026, after multiple defense-requested delays. The DOJ has until December 15, 2025, to respond to the release motion. Sam Lee, still a fugitive in Dubai, recently claimed similar schemes would be legal under the current administration, though securities and wire fraud remain federal crimes regardless of administration.
Burton’s case highlights the risks of MLM crypto schemes promising guaranteed returns. Investors should verify platforms through sec.gov or ssb.texas.gov and avoid schemes tied to known fraudsters. Bitcoin (BTC) at $113,234 and Ethereum (ETH) at $4,070 remain stable, per CoinMarketCap. Diversify into USDC or ETH and set stop-losses below BTC’s $112,000 to manage volatility, per TradingView. Follow @TheBlock__ on X for regulatory updates.
