In New York state, federal court in Brooklyn has indicted Rashawn Russell, a former investment banker. The 27-year-old is a registered broker accused of allegedly defrauding numerous investors. He allegedly promised them unrealistic profits on fake cryptocurrency investments. However, he diverted the funds received to finance his luxurious lifestyle.
What was this crypto fraud all about?
According to court documents, Rashawn Russell participated in a scheme to defraud several investors. He encouraged his alleged victims to invest with him on the basis of false promises that, among other things, he would use their funds for cryptocurrency investments. According to CoinTelegraphin order to convince themhe promised them significant and sometimes guaranteed returns. Russell is said to have actually embezzled a large portion of investors’ assets during this crypto fraud. He used them for his personal advantage, in particular to gamble and to reimburse other investors.
The indictment further alleges that Russell repeatedly failed to reimburse investors. The latter have never been able to benefit from the promised rates of return. After some investors demanded to be reimbursed for their investments, Russell also allegedly falsely claimed that he wired them money. The former Deutsche Bank banker is therefore accused, among other things, of electronic fraud. He could spend the next 20 years in prison if convicted.
Too many scandals?
This crypto fraud comes in a context in which the fate of cryptocurrencies is about to be discussed at the next G7 summit. In addition, several authorities around the world have clearly demonstrated their desire to do away with these assets.. Scams of this style are rightly cited by detractors to explain why crypto should be banned.
Breon Peace, the district attorney for the Eastern District of New York, has no intention of being soft on Russell:
” As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud many investors to fund his lifestyle. This office will continue to aggressively pursue fraudsters who commit these schemes against investors in digital asset markets. »
Bitcoin is showing increasingly encouraging figures. This crypto fraud comes at a time when the crypto industry is waiting for a bull run. It even seems to have defied the current banking crisis.. Can this scandal contribute to slowing it down?
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