A former investment banker and registered broker has been sentenced to three years and five months in prison for orchestrating a fraudulent cryptocurrency investment scheme that defrauded investors of approximately $1.5 million. Rashawn Russell, 28, conducted the scheme from November 2020 to August 2022. According to court documents, Russell enticed investors with false promises of substantial and sometimes guaranteed returns from crypto investments.
Instead of using the funds as promised, Russell misappropriated much of the investors’ assets to cover personal expenses, gamble, and repay other investors in a classic Ponzi scheme. When investors demanded their money back, Russell falsely claimed that he had wired the repayments.
In addition to crypto fraud, Rashawn Russell engaged in a separate scheme that involved access device fraud. Between September 2021 and June 2023, he fraudulently obtained at least 97 credit and debit cards, as well as 43 identification cards, primarily from gym lockers in New York and New Jersey. He used the stolen information to make unauthorized transactions, including opening online gambling accounts and making fraudulent purchases.
As part of his sentencing, Russell was ordered to pay over $1.5 million in restitution to the victims of his crypto fraud scheme. He had previously pleaded guilty to charges of wire fraud and access device fraud in September 2023.
This case underscores the persistent risks associated with cryptocurrency investments and the importance of regulatory vigilance in the rapidly evolving digital asset space. For more updates on this and other crypto crime stories, follow FinTelegram.
