- A Connecticut man transferred the victims’ funds to Stake.com, an offshore gambling company, under the name of crypto investing.
- He was charged with 21 counts, including fraud, money laundering, and false statements to investigators.
A Connecticut man has been charged with a 21-count indictment for allegedly running a crypto fraud scheme that defrauded several investors and lost $950,000 of their funds. As the U.S. Attorney’s Office for the District of Connecticut announced on February 12
According to the DOJ release, his name is Elmin Redzepagic, a 24-year-old who asked for funds from investors by promising to trade crypto on their behalf and generate substantial returns. Once he got victims, he told them they had earned a substantial profit but had to pay additional fees, which were gas fees to withdraw it, as the incident happened between approximately May 2021 and March 2025
Further, he claimed he was part of a team that included an individual known as “The Chef,” who was described as the alleged ringleader. However, it remains unclear whether that ringleader is a separate individual who has not yet been identified.
But, as promised, he did not invest the funds in crypto; instead, he sent them to an offshore gambling platform named Stake.com, which led to a loss of $950,000 victims’ funds
Then, on January 20, 2026, he was charged with, “seven counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; 11 counts of international money laundering, an offense that carries a maximum term of imprisonment of 20 years on each count; and three counts of making a false statement to IRS Criminal Investigation agents, an offense that carries a maximum term of imprisonment of five years on each count,” as per the DOJ release.
Finally, he appeared in the federal court in Hartford on February 12, where he denied the charges and did not admit to the crime; however, the judge released him on a $500,000 bond.
Digital Asset Fraud Climbs
With that, according to blockchain security firm CertiK, crypto frauds and breaches totaled $370.3 million in January 2026, the biggest monthly figure in over a year. The figure indicates an almost fourfold rise year on year from January 2025 losses, mainly through phishing and social engineering scams
While Connecticut case highlights the retail-focused crypto fraud, as scams and phishing attacks continue to account for a significant share of digital asset losses
Highlighted Crypto News:
U.S. Bankers Urge OCC to Slow Crypto Trust Bank Charters
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
CFO Gets Prison Time After Losing $35 Million of Company Money in Crypto Side Hustle
Nevin Shetty, a Washington man, was sentenced to two years in prison for diverting $35 million from his employer to a DeFi platform, leading to significant company losses and layoffs. After investments collapsed, he confessed and was subsequently fired.
Decrypt1h ago
$10M Settlement Ends SEC Case Against Justin Sun
The SEC has reached a $10 million settlement with Justin Sun, resolving allegations of securities fraud linked to TRX and BTT tokens. The agreement dismisses personal claims against Sun and highlights the SEC's ongoing regulatory efforts in the crypto industry.
TodayqNews4h ago
Curve Finance accuses a decentralized trading platform of unauthorized use of its code
Curve Finance recently stated that a certain decentralized trading platform used its code without permission, violating open-source licenses, and emphasized that this action is illegal and unwise. Curve Finance proposed that legitimate use of its Stableswap functionality can be achieved through licensing or collaboration to ensure the safety of user funds.
GateNews4h ago
A certain CEX responds to U.S. Senator's anti-money laundering inquiry, claiming media reports are inaccurate.
A certain CEX recently responded to a U.S. senator's inquiry about anti-money laundering, stating that the allegations are false. The platform emphasized that it has established strict compliance and sanctions controls, prohibiting Iranian users. It also launched an internal investigation, delisted related entities, and helped law enforcement recover over $752 million in the past three years. Moving forward, it will continue to strengthen its compliance system.
GateNews5h ago
Iran and North Korea are both using it! Stablecoins have become the preferred virtual asset for illegal transactions, with involved fraud totaling $51 billion.
According to the latest FATF report, stablecoins have become a primary funding tool for illegal transactions, especially in countries like North Korea and Iran. The report indicates that by 2025, stablecoins will account for 84% of illegal virtual asset trading volume, and calls for increased regulation of stablecoin issuers to prevent money laundering and other criminal activities. The global stablecoin market value has exceeded $300 billion, and regulators need to act quickly to close regulatory gaps.
区块客6h ago
Bank failures, war conflicts: Iran's $7.8 billion cryptocurrency "shadow economy" becomes the focus again
As the US-Israel coalition's military actions against Iran escalate, Iran's "shadow economy" becomes a focal point. Iran has legalized Bitcoin mining and is utilizing cheap electricity for mining to bypass US dollar sanctions, with the mining scale potentially reaching $7.8 billion and being heavily relied upon by the military. The rial has depreciated by over 96%, and the stablecoin USDT has become a new tool for trade, while the public is turning to Bitcoin to protect their assets.
区块客6h ago
