A former employee of Deutsche Bank has been accused of defrauding cryptocurrency investors in the US. The man from Brooklyn has allegedly stolen funds from victims who were promised large returns on their crypto investments in a Ponzi-like scheme.
Ex-Deutsche Bank Staffer Arrested and Indicted Over Crypto Investment Fraud
Rashawn Russell, a 27-year-old investment banker and licensed broker from Brooklyn, New York, was detained on April 10 on criminal charges associated with his supposed role in running a crypto-related fraud, the U.S. Department of Justice declared on Tuesday.
Prosecutors allege that Russel duped multiple investors, enticing them with the promise of substantial and even guaranteed returns from cryptocurrency trading. However, he purportedly utilized their money for his own gain, to bet and to pay back other investors in order to keep the scheme going.
The indictment claims that the accused repeatedly failed to offer investors with the promised rates of return. And when some of them asked to be refunded their investments, he allegedly represented that he had wired them the money.
Although the document merely mentions he worked as an investment banker between July 2018 and November 2021, Reuters reported that Russel became an investment banking analyst at Deutsche Bank in July 2018 and was promoted to associate in July 2020.
Declining to comment specifically on an ongoing legal case, the bank stated through a spokesperson that it “regularly supports law enforcement and regulatory oversight efforts, including appropriately responding to and cooperating with authorized investigations and proceedings.”
Russell supposedly solicited investments from friends, former classmates and colleagues, whom he convinced he had found a successful technique for altcoin trading, Bloomberg noted in a report. He is charged with one count of wire fraud and could face up to 20 years in prison, if convicted. The broker pleaded not guilty and was released on a $200,000 bail.
“Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” U.S. Attorney for the Eastern District of New York Breon Peace was quoted as saying.
“This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets,” he emphasized. Russel’s indictment comes amid an ongoing crackdown on crypto-related fraud in the US.
Do you think US prosecutors and regulators will intensify the crackdown on crypto investment frauds? Share your opinion in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
