Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
A federal court in Brooklyn, New York, has charged a former investment banker and registered broker with allegedly defrauding numerous investors by guaranteeing profits on fictitious cryptocurrency investments and misusing the funds acquired to support his lifestyle.
Court documents indicate that the defendant, Rashawn Russell, exploited the increasing interest in cryptocurrency investments to deceive investors. Russell persuaded several investors to reinvest their fiat savings into cryptocurrencies, frequently assuring them of substantial or “guaranteed” returns. However, it is claimed that Russell misappropriated the investors’ funds to sustain his personal lifestyle.
Breon Peace, the United States attorney for the Eastern District of New York, disclosed the court’s intention to pursue the case against the former banker:
“As alleged, Russell transformed the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to finance his lifestyle. This Office will continue to vigorously pursue fraudsters engaging in these schemes against investors in the digital asset markets.”
Related Posts
After persuading investors regarding the fraudulent cryptocurrency investment scheme based on his reputation as a former investment banker and a registered broker with the Financial Industry Regulatory Authority, Russell allegedly utilized their funds for gambling and to pay back other investors.
As per information provided by the U.S. Department of Justice (DOJ), Russell created false documents to mislead unsuspecting investors about the status of their cryptocurrency investments. The forgery included modifying an image of a bank’s website to show fictitious balances and bank wire transfer confirmations.
If found guilty, Russell could face a maximum sentence of 20 years in prison. The DOJ has also urged other investors to come forward if they believe they have fallen victim to the alleged crime.
Related: Bitcoin surpasses Donald Trump, firearms in America: Google Trends
On April 6, the Washington State Department of Financial Institutions issued a consumer protection alert regarding the crypto exchange Eucoinotrade.
The report stated that Eucoinotrade engaged in an “advanced fee fraud” where users were required to pay fees for upgrading accounts and withdrawing funds. While users experienced no issues depositing money, they faced difficulties when attempting to cash out.
