Rodney Burton was arrested by US authorities and charged with defrauding over $7 million via a phony investment scheme. This is according to the IRS’s allegations on January 5.

Burton, who is also known as “Bitcoin Rodney,” was charged with promoting the HyperVerse cryptocurrency investment scheme in Maryland, court documents reveal. HyperVerse was also known as Hyperfund and HyperCapital, according to the court filing.

According to Andrew J. Accardi’s filing, an IRS Special Agent in Criminal Investigations, “a network of HyperFund Promotors made fraudulent promotional presentations” to investors and prospective investors. “HyperFund falsely stated that investors who bought’memberships,’ would receive between 0.5 and 1% in passive rewards daily until HyperFund tripled or doubled the initial investment of the investor.”

The filing claims that Burton received cashier’s check or wire transfers totaling $7.851,711 from individuals. He was detained in Florida on Friday and will be moved to Maryland.

According to a investigation conducted by Guardian Australia in the last month, thousands of people lost millions of dollars as a result of the HyperVerse crypto-scheme. According to the newspaper, the scheme was run and promoted by Steven Reece Lewis. does not appear to exist.

Stephen Jones, Australia’s Assistant Treasury Minister and Minister for Financial Services, has announced that he’ll ask the Securities and Investments Commission of the country (ASIC) to explain why they didn’t warn the public about the HyperVerse cryptocurrency scheme. This is in contrast to other nations.

CoinDesk’s request for comments was not immediately responded to by the U.S. Treasury or Barton’s team of public defenders.

Sandali Handagama contributed reporting.

Read more: Australian Treasury to question regulator over HyperVerse crypto scheme: Report

Sheldon Reback is the editor.