Federal court in Brooklyn, New York, indicted a former investment banker and registered stockbroker for allegedly defrauding numerous investors. promising benefits on false cryptocurrency investments and misappropriating the funds received to finance their lifestyle.
Documents in the court’s possession state that the defendant, Rashawn Russell, abused the growing interest in cryptocurrency investments to mislead investors. Russell convinced multiple investors to reinvest their fiat savings in cryptocurrency, often promising significant or “guaranteed” returns. However, it is alleged that Russell misappropriated money from investors to finance his personal lifestyle.
Breon Peace, United States Attorney for the Eastern District of New York, disclosed the court’s intention to move forward with the case against the former banker:
“As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to finance his lifestyle. This Office will continue to aggressively pursue fraudsters who perpetrate these scams against investors in the exchanges. digital assets”.
After convincing investors about the bogus cryptocurrency investment scheme based on his credibility as a former investment banker and broker registered with the Financial Industry Regulatory Authority, Russell allegedly used his money to gamble and repay other investors.
According to information provided by the United States Department of Justice (DOJ), Russell falsified documents to mislead unsuspecting investors about the status of their cryptocurrency investments. The forgery consisted of altering an image on a bank’s website to show false balances and bank transfer confirmations.
If found guilty, Russell could face up to 20 years in prison. The DOJ also asked other investors to get in touch if they suspected they were victims of the alleged crime.
On April 6, the Washington State Department of Financial Institutions issued a consumer protection alert against cryptocurrency exchange Eucoinotrade.
According to the report, Eucoinotrade facilitated an “advanced commission scam” in which users were asked to pay to upgrade accounts and withdraw funds. Although users did not have problems depositing money, they did have problems when trying to withdraw it.
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