In brief
- A Connecticut man is facing up to 375 years in prison for allegedly gambling away crypto customers’ funds on Stake.
- Prosecutors say he misled clients by posing as a crypto investor working for a markets guru known as “The Chef.”
- The man pleaded not guilty this week to 21 wire fraud, money laundering, and false statements charges.
A 24-year-old Connecticut man has been accused by federal prosecutors of taking almost a million dollars from would-be crypto investors and gambling away the funds online.
The man, Elmin Redzepagic, allegedly marketed himself as a savvy crypto investor who earned high rates of return. But upon collecting funds from clients, prosecutors claim, he would deposit them in Stake, the controversial offshore crypto casino.
Redzepagic lost investors over $950,000 with such activity, the Department of Justice said.
Last month, a federal grand jury in New Haven indicted Redzepagic on seven wire fraud charges, 11 counts of international money laundering, and three counts of making false statements to IRS criminal investigators. He faces a total of 375 years in prison if found guilty on all charges.
On Thursday, Redzepagic pleaded not guilty to all charges before a federal judge in Hartford. He was released on a $500,000 bond.
According to the DOJ and IRS, the defendant created an elaborate scheme to convince investors he ran a legitimate digital asset investment business.
He claimed to work for a crypto guru known only as “The Chef,” who led the operation and decided how and when investors would receive their profits.
The Chef always earned Redzepagic’s customers substantial profits, as far as the customers were aware—but would often demand additional payments for network gas fees to release the funds.
Sometimes, Redzepagic would pay his victims large “lulling” payments to keep the scheme going, prosecutors alleged.
In 2023, the defendant was interviewed about the alleged conduct by the IRS and made several false statements, the indictment claimed. He then allegedly continued his illegal scheme until March of 2025.
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
U.S. charges Chinese pharmaceutical companies! Involved in providing fentanyl to Mexican drug cartels, with cryptocurrency as the transaction medium.
The United States has charged two Chinese pharmaceutical companies with allegedly supplying precursor chemicals for fentanyl to Mexican drug cartels and using cryptocurrencies for money laundering, involving $32 million. The case reveals a transnational drug supply chain and marks a new development in law enforcement cooperation between the U.S. and China.
CryptoCity3m ago
The Ministry of Foreign Affairs responds to "China bans two Manus executives from leaving the country": Suggests inquiring with the relevant authorities.
Gate News Report, March 26 — Foreign Ministry Spokesperson Lin Jian held a routine press conference. A reporter from Agence France-Presse asked whether the spokesperson could confirm and provide more details about a report by The Financial Times of the UK, stating that China has banned two executives of the artificial intelligence company Manus from leaving the country. Lin Jian responded, "I am not aware of the situation you mentioned. I suggest inquiring with the relevant Chinese authorities."
GateNews7m ago
The United States has charged two Chinese pharmaceutical companies and six Chinese citizens with using cryptocurrency to facilitate fentanyl trafficking and money laundering.
A federal grand jury in the United States, Ohio, has indicted two Chinese pharmaceutical companies and six Chinese nationals, accusing them of selling substances like dexmedetomidine to drug traffickers and transferring funds through encrypted wallets. The case is driven by the FBI's "Operation Box Cutter" operation. If convicted, the defendants face severe penalties.
GateNews52m ago
NVIDIA faces class-action lawsuit! During the crypto winter, its stock price plummeted 28% over two days, and investors are angrily accusing the company of misleading revenue disclosures.
Nvidia has recently become involved in a legal dispute, with the court certifying a class-action lawsuit that allows investors to seek compensation for false revenue disclosures. The core of the lawsuit concerns whether Nvidia concealed sales of graphics cards related to cryptocurrency mining during the 2017-2018 crypto boom. The court found that internal emails showed the company was aware that this information could impact stock prices, which prompted the case to proceed. This case has gone through multiple appeals and has ultimately entered the class-action litigation process.
ChainNewsAbmedia1h ago
Swan Bitcoin exposes Tether mining coup, requests summons for U.S. Secretary of Commerce
Swan Bitcoin requests the summons of Secretary of Commerce Howard Lutnick and Cantor Fitzgerald to support an offshore lawsuit against 2040 Energy. Swan accuses Tether of inciting an "industry coup," leading to the breakdown of its partnership with Tether, and suggests Lutnick may be connected to Tether’s improper conduct. If the court approves the subpoena, it will help reveal relevant communications and financial relationships.
MarketWhisper2h ago
The U.S. plans to ban officials from participating in prediction market trading, as insider trading risks prompt regulatory upgrades.
U.S. lawmakers have introduced the PREDICT Act, which prohibits the President and senior officials from participating in prediction market trading, aiming to combat insider trading for profit. Violators will face fines and forfeiture of profits. At the same time, regulatory agencies are tightening their scrutiny of prediction markets, and several states have filed lawsuits against related platforms, resulting in stricter compliance requirements for the industry.
GateNews2h ago
