A prominent promoter of the alleged global HyperVerse cryptocurrency scheme has filed explosive new claims in a United States court, arguing he was an unwitting victim of an "elaborate" fraud masterminded by its Australian founder, Sam Lee.
The Alleged $1.89bn Deception
Rodney Burton, widely known as 'Bitcoin Rodney', was charged in the US in early 2024 for his role in promoting HyperVerse. The scheme, which operated globally from 2020 under various names like HyperFund and HyperNation, is alleged to have defrauded investors of a staggering US$1.89bn (approximately A$2.9bn).
In a memorandum filed in the District Court of Maryland on Monday, Burton's legal team contends he acted in good faith. They state he conducted "extraordinary due diligence", including trips to Hong Kong and Dubai where he met Lee and was shown corporate offices for HyperFund. The filing argues this infrastructure was "deliberately created by Sam Lee and others to deceive investors".
The document includes a photograph purportedly showing Burton with Lee in a Dubai office, presented as evidence of the scheme's apparent legitimacy.
Lee's Defence and Political Claims
Sam Lee, a former Melbourne blockchain entrepreneur once dubbed the "crown prince of bitcoin", has vigorously denied the allegations. In a statement, Lee expressed sympathy for Burton, calling him a pioneer caught in a "Biden Era anti-crypto witch hunt" and labelling his claims "baseless".
Lee, who moved to Dubai in late December 2021, insists his involvement was "limited to tech provision". He has also filed a defence to separate civil charges brought by the US Securities and Exchange Commission (SEC), denying all allegations and challenging the court's jurisdiction.
Intriguingly, Burton's memorandum and Lee's comments both reference US political figures. Burton's team suggests the Department of Justice should dismiss the case because former President Donald Trump "favors civil regulation over criminal prosecution" of crypto. Lee echoed this, suggesting a similar scheme "if done today, will not run into any regulatory hurdles" under a Trump administration.
A Global Scheme Unravels
The global scale of HyperVerse was exposed in a Guardian Australia investigation in late 2023. In January 2024, Lee was charged in the US with conspiracy to commit securities and wire fraud. The SEC's civil complaint further charges him with fraud and the unregistered sale of securities.
The court documents allege a sophisticated deception beyond fake offices. They cite short celebrity video endorsements, including one from Apple co-founder Steve Wozniak, and presentations from a man commissioned to pose as a fictitious CEO named Steven Reece Lewis. There is no suggestion Wozniak or the presenter were aware of any alleged wrongdoing.
The memorandum asserts: "This elaborate deception … demonstrates the sophisticated nature of the fraud that Mr Lee orchestrated."
Regulatory Fallout and Ongoing Cases
The fallout has extended to Australian regulators. Following media reports, the Australian Securities and Investments Commission (ASIC) agreed to examine Lee's previous company, Blockchain Global. ASIC secured, but later lost, a travel ban on a fellow director and obtained an interim travel restraint order against Lee's alleged co-founder, Ryan Xu.
Burton's legal counsel now argues their client has served 22 months in pre-trial custody and should be released, citing his traditional right to freedom before conviction. They also point to Trump's election as a reason, stating he "wants to make America the 'crypto capital of the world'".
The civil case against Lee was stayed last month pending the outcome of the criminal proceedings, as both share common facts and witnesses. Burton's criminal trial is currently listed for March 2026.
