- A Connecticut man transferred the victims’ funds to Stake.com, an offshore gambling company, under the name of crypto investing.
- He was charged with 21 counts, including fraud, money laundering, and false statements to investigators.
A Connecticut man has been charged with a 21-count indictment for allegedly running a crypto fraud scheme that defrauded several investors and lost $950,000 of their funds. As the U.S. Attorney’s Office for the District of Connecticut announced on February 12
According to the DOJ release, his name is Elmin Redzepagic, a 24-year-old who asked for funds from investors by promising to trade crypto on their behalf and generate substantial returns. Once he got victims, he told them they had earned a substantial profit but had to pay additional fees, which were gas fees to withdraw it, as the incident happened between approximately May 2021 and March 2025
Further, he claimed he was part of a team that included an individual known as “The Chef,” who was described as the alleged ringleader. However, it remains unclear whether that ringleader is a separate individual who has not yet been identified.
But, as promised, he did not invest the funds in crypto; instead, he sent them to an offshore gambling platform named Stake.com, which led to a loss of $950,000 victims’ funds
Then, on January 20, 2026, he was charged with, “seven counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; 11 counts of international money laundering, an offense that carries a maximum term of imprisonment of 20 years on each count; and three counts of making a false statement to IRS Criminal Investigation agents, an offense that carries a maximum term of imprisonment of five years on each count,” as per the DOJ release.
Finally, he appeared in the federal court in Hartford on February 12, where he denied the charges and did not admit to the crime; however, the judge released him on a $500,000 bond.
Digital Asset Fraud Climbs
With that, according to blockchain security firm CertiK, crypto frauds and breaches totaled $370.3 million in January 2026, the biggest monthly figure in over a year. The figure indicates an almost fourfold rise year on year from January 2025 losses, mainly through phishing and social engineering scams
While Connecticut case highlights the retail-focused crypto fraud, as scams and phishing attacks continue to account for a significant share of digital asset losses
Highlighted Crypto News:
U.S. Bankers Urge OCC to Slow Crypto Trust Bank Charters
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Three men conspired to steal nearly $7 million worth of crypto assets from the SafeX platform, with the main culprit sentenced to 2 years in Singapore
Three men conspired to steal over $6.9 million in cryptocurrency from the SafeX trading platform, and 38-year-old Chinese man Zhang Xinghua was sentenced to two years for money laundering. The police have frozen $2.1 million in cryptocurrency, and the remaining $4.8 million cannot be recovered because it is stored in offshore wallets.
GateNews39m ago
Kalshi Files Lawsuit Against Iowa Regulators
Kalshi has sued Iowa regulators, claiming that they may impose restrictions on its federally regulated sports-related event contracts, risking enforcement action against the platform. This legal battle underscores the tension between state and federal oversight of prediction markets.
TodayqNews51m ago
Refuse to risk lives! U.S. lawmakers introduce legislation banning market prediction wars & death bets
U.S. Senator Adam Schiff has introduced the "Death Betting Act," which fully bans contracts related to terrorism, war, and death in prediction markets. The aim is to eliminate CFTC's regulatory flexibility and prevent national security risks. This move is a direct challenge to the recent relaxation of regulation by the CFTC and emphasizes that such bets will facilitate insider profits and are detrimental to public interest. This bill and similar actions are intended to respond to the ethical controversies sparked by prediction markets.
CryptoCity1h ago
Court hearing as early as October! U.S. prosecutors seek a retrial of Tornado co-founder, previously charged with laundering $1 billion.
The U.S. Department of Justice has requested a reexamination of the money laundering and sanctions case against Tornado Cash co-founder Roman Storm, with a court date expected in October 2026. Although he has filed a motion for a not guilty verdict, prosecutors still emphasize the need to determine a reexamination date as soon as possible. Roman Storm remains resolute, emphasizing that he faces serious charges due to open-source code.
CryptoCity1h ago
Prediction Market Kalshi Sues Iowa Attorney General and Racing and Gaming Commission
Prediction market Kalshi sues Iowa Attorney General Brenna Bird and the Gaming Commission in federal court, claiming to face enforcement risks, asserting that federal law takes precedence over state law, and has engaged in legal disputes with regulators in multiple states.
GateNews2h ago
AI scams escalate! Cryptocurrency ATM fraud losses may reach $333 million in 2025, with US complaints soaring by 33%
The report shows that with the use of AI and deepfake technology, cryptocurrency ATM scams in the United States are rapidly increasing, with losses expected to reach $333 million by 2025. Crypto ATMs are widely exploited due to low authentication standards, with seniors being significantly affected. The scams are diverse, and AI technology has enhanced the efficiency of fraud. Regulators have begun to pay attention and have proposed relevant legislation to strengthen protections.
GateNews2h ago
