Bitcoin Rodney has been arrested for operating an unlicensed money transmission business. As reported by The Guardian, this arrest marks a significant event in the ongoing investigation of cryptocurrency operations.
Burton, who was apprehended on Friday and is awaiting transfer to Maryland, where the charges were filed, is reportedly involved in the HyperVerse scheme.
This scheme is notable for being the subject of the first charges relating to its operations.
According to court documents, Burton and a group of promoters allegedly offered investors misleading promotional material about a non-existent bitcoin mining-based investment company.
The US Internal Revenue Service (IRS) has highlighted the fraudulent nature of these presentations in their court filings.
The extent of the scheme’s reach is further complicated by potential ties to Blockchain Global, an Australian blockchain startup that collapsed, leaving $58 million in debt to creditors.
This connection was uncovered following an investigation by The Guardian, which revealed that the scheme had associations with Blockchain Global’s directors, Sam Lee and Ryan Xu.
Despite several consumer alerts from global banking agencies, Australian regulators, including the Australian Securities and Investments Commission (ASIC), did not initially detect the activities of the HyperVerse plans.
However, ASIC has now received a referral about possible violations of the Corporations Act by Lee and Xu, although no enforcement action is currently planned.
Also Read: HyperVerse Scam Alert and ASIC’s Under Investigation
