Former Deutsche Bank employee Rashawn Russell has been apprehended in Brooklyn, accused of defrauding investors and engaging in cryptocurrency fraud.
As per the US Department of Justice, Russell defrauded several investors by falsely assuring them that their money would be invested in cryptocurrencies, promising big returns.
However, Russell spent most of the clients’ funds on his own needs, gambling, and paying off other investors.
Prosecutors allege that Russell created fraudulent documents to deceive investors about the status of their investments.
When one of the investors attempted to reclaim their invested funds, Russell never returned the money, instead issuing a counterfeit bank transfer confirmation.
If found guilty, Russell could face up to 20 years in prison.
Attorney for the Eastern District of New York, Breon Peace, stated that Russell capitalized on the public’s interest in cryptocurrencies to orchestrate a fraudulent scheme, living a lavish lifestyle at the cost of deceived investors.
The US Department of Justice recently confiscated approximately $112 million in digital assets from cryptocurrency scammers posing as investment advisors, and last year, it established a cryptocurrency crime group to tackle such frauds.