- 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
Polymarket Suspected Insider Trading: 6 "Mystery Wallets" Bet on US-Iran Ceasefire
Recently, six wallets on Polymarket precisely built positions before the U.S. attack on Iran and profited $1.2 million, then continued betting on Iranian nuclear facilities, and later coordinated a $100,000 bet predicting a U.S.-Iran ceasefire. This series of transactions has raised market concerns about information advantages and highlighted a trust crisis in prediction markets. Changes in market participant behavior reflect worries about insider trading, and the conflict between transparency and anonymity makes it difficult to trace responsibility.
MarketWhisper16m ago
Circle Freezes USDC Balances in 16 Hot Wallets Involving Exchanges and Multiple Business Operations
Gate News: On March 26, according to ZachXBT's disclosure, Circle froze USDC balances in 16 business-related hot wallets on March 25. The relevant entities stated that this action is related to a U.S. civil case with details not yet made public. ZachXBT stated that upon reviewing on-chain data, these addresses are involved in exchanges, gaming platforms, and forex businesses with no apparent connections to each other. The freeze has already impacted the operations of the related businesses.
GateNews52m ago
AI agents to help investigators unearth crypto criminals, according to new TRM program
Law enforcement agencies will begin using AI agents from TRM Labs to enhance investigations by translating natural language queries into investigative actions, addressing the rise in crypto-related fraud and expanding caseloads.
CoinDesk6h ago
ZachXBT: Russian OTC Broker Allegedly Assists Ransomware Money Laundering Over $4.7 Million, Funds Bridged from BTC to Avalanche
On-chain detective ZachXBT disclosed that Russian OTC broker Aleksandr Khinkis has allegedly assisted in laundering $4.7 million in ransomware proceeds since July 2025, involving 796 Bitcoin. The suspicious funds were transferred cross-chain to Avalanche and deposited into Aave, with frequent activity in Southeast Asia and Australia. ZachXBT is calling on victims to report relevant addresses to improve freezing efficiency.
GateNews12h ago
Irish Police Crack First of 12 Bitcoin Wallets in $418M Drug Seizure
Ireland's Criminal Assets Bureau accessed a Bitcoin wallet containing 500 BTC valued at $34 million, part of a seizure from drug dealer Clifton Collins. Support from Europol's cybercrime unit was crucial in overcoming decryption challenges.
Decrypt13h ago
Husband accuses wife of stealing over 2,000 bitcoins! Judge: The plaintiff has a very high chance of winning.
The UK High Court is hearing a Bitcoin theft case in which the plaintiff alleges his estranged wife secretly stole 2,323 Bitcoin in 2023. In the case, the plaintiff used audio evidence to prove that the defendant and her sister planned to transfer the Bitcoin. The judge found a high probability of the plaintiff prevailing and ordered asset freezing while dismissing some claims, recommending expedited trial proceedings.
区块客14h ago
