Former Deutsche Bank Investment Banker Charged With Crypto Fraud in US
An investment banker formerly employed by Deutsche Bank has been charged with perpetrating a crypto-related fraud. The man from Brooklyn has been accused of misappropriating funds from victims whom he promised large returns on cryptocurrency investments in a Ponzi-like scheme.
Ex-Deutsche Bank Investment Banker Arrested and Charged for Defrauding Crypto Investors
Rashawn Russell, a 27-year-old investment banker and registered broker from Brooklyn, New York, was arrested on April 10 on criminal charges related to his alleged role in running a crypto investment fraud scheme, the U.S. Department of Justice announced on Tuesday.
Prosecutors claim that Russel defrauded multiple investors, luring them with promises of big and even guaranteed returns from cryptocurrency investment and trading. However, he used their money for his own benefit, to gamble and to repay other investors in order to keep the scheme going.
The indictment alleges that the accused repeatedly failed to provide investors with the promised rates of return. And when some of them requested to be repaid their investments, he falsely represented that he had wired them the money.
While the document only mentions he worked as an investment banker between July 2018 and November 2021, Reuters reported that Russel became investment banking analyst at Deutsche Bank in July 2018 and was promoted to associate in July 2020.
Declining to comment specifically on an ongoing legal case, the bank stated through a spokesperson that it “regularly supports law enforcement and regulatory oversight efforts, including appropriately responding to and cooperating with authorized investigations and proceedings.”
Russell solicited investments from friends, former classmates and colleagues, whom he convinced he had developed a successful strategy for altcoin trading, Bloomberg detailed in a report. He is charged with one count of wire fraud and would face up to 20 years in prison, if convicted. The banker pleaded not guilty and was released on a $200,000 bail.
“Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” U.S. Attorney for the Eastern District of New York Breon Peace was quoted as stating.
“This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets,” he emphasized. Russel’s indictment comes amid an ongoing crackdown on crypto-related fraud in the United States.
Tags in this story Altcoins, Bank, broker, Charges, Crypto, Crypto Fraud, crypto investments, Cryptocurrencies, Cryptocurrency, Deutsche Bank, Fraud, fraud scheme, indictment, investment banker, Investments, Investors, U.S., US, Victims
Do you think U.S. prosecutors and regulators will intensify the crackdown on crypto investment fraud schemes? Share your thoughts on the subject in the comments section below.
London Stock Exchange’s LCH SA to Clear Bitcoin Futures and Options on GFO-X Through New Service NEWS | 7 hours ago ETHGlobal Hackathon Kicks Off in Tokyo With First Ever Pragma Summit NEWS | 8 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Peter Schiff Says Banking Crisis Not Over, Much Worse Financial Crisis Incoming — Warns of ‘Massive’ Recession
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
Fidelity Investments Launches Crypto, Metaverse ETFs — Says ‘We Continue to See Demand’
Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. “We continue to see demand, particularly from young investors, for access … read more.
Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Fed’s Bullard Wants to Raise Bank Rate to 3.5% by Year’s End, Hints at 75 Basis Point Rate Hike Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design