Ex-Banker Gets 41 Months for Fake Crypto Fund and Stolen Credit Cards
A former investment banker has been sentenced to prison for running a fraudulent cryptocurrency scheme and using stolen credit cards. Rashawn Russell, who previously worked at Deutsche Bank, received a 41-month prison term in a Brooklyn court on May 31st.
Fake Crypto Fund Promised Big Returns
According to the US Department of Justice (DOJ), Russell operated a bogus investment fund called “R3 Crypto Fund” between 2020 and 2022. The fund lured investors with promises of high returns on cryptocurrency investments. However, these promises were nothing more than a lie.
Instead of investing the money as promised, Russell used the funds for personal gain or to pay back other investors in a Ponzi-like scheme. He even resorted to fabricating wire transfer records to deceive his victims.
Russell Was a Registered Broker
As a registered broker, Russell held a position of trust. His actions were a clear breach of that trust and a violation of financial regulations. The maximum potential sentence for the charges against Russell was 30 years in prison.
In addition to the prison sentence, the court ordered Russell to pay back $1.5 million to the victims of his crypto scam.
The investigation also revealed another criminal activity involving Russell. He obtained nearly 100 stolen bank cards using fake identities, intending to use them for fraudulent transactions.
Russell pleaded guilty to all charges in September 2023. His conviction marks another instance of law enforcement cracking down on crypto-related fraud. In recent months, several other individuals have faced charges for similar crimes.
Recent Crypto Fraud Cases
In April 2023, a computer programmer received a three-year prison sentence for launching cyberattacks against cryptocurrency exchanges.
The DOJ charged two brothers in May 2023 for manipulating the Ethereum blockchain through fraudulent activities.
Another individual pleaded guilty in May 2023 for a scam involving a fake crypto wallet.
Two people were arrested on money laundering charges in May 2023, connected to a multi-million dollar crypto scam.
