Former investment banker charged for allegedly defrauding crypto investors

The national tribunal successful Brooklyn, New York, charged a erstwhile concern banker and registered broker for allegedly defrauding galore investors by promising profits connected fake cryptocurrency investments and misappropriating the funds received to concern his lifestyle. 

Documents with the tribunal assertion the defendant, Rashawn Russell, misused the increasing involvement successful crypto investments to mislead investors. Russell convinced aggregate investors to reinvest their fiat savings into cryptocurrencies, often promising important oregon “guaranteed” returns. However, it is alleged that Russell misappropriated the investors’ wealth to money his idiosyncratic lifestyle.

Breon Peace, United States lawyer for the Eastern District of New York, revealed the court’s intent to prosecute the lawsuit against the erstwhile banker:

“As alleged, Russell turned the request for cryptocurrency investments into a strategy to defraud galore investors successful bid to money his lifestyle. This Office volition proceed to aggressively prosecute fraudsters perpetrating these schemes against investors successful the integer plus markets.”

After convincing investors astir the fake cryptocurrency concern strategy based connected his credibility arsenic a erstwhile concern banker and a registered broker with the Financial Industry Regulatory Authority, Russell allegedly utilized their wealth to gamble and repay different investors.

According to the accusation shared by the U.S. Department of Justice (DOJ), Russell fabricated documents to mislead unwary investors astir the presumption of their crypto investments. The forgery progressive altering an representation of a bank’s website to picture fake balances and slope ligament transportation confirmations.

If convicted, Russell could look a maximum of 20 years successful prison. The DOJ besides requested different investors to scope retired if they fishy themselves of falling unfortunate to the alleged crime.

Related: Bitcoin tops Donald Trump, guns successful America: Google Trends

On April 6, the Washington State Department of Financial Institutions issued a user extortion alert against the crypto speech Eucoinotrade.

According to the report, Eucoinotrade facilitated an “advanced interest fraud” wherein users were asked to wage up for upgrading accounts and withdrawing funds. While users faced nary problems depositing money, they encountered problems erstwhile trying to currency out.