Crypto News – For his involvement in the fraudulent cryptocurrency trading scheme, Rashawn Russell may spend up to 30 years in prison.
Ex-Deutsche Banker Rashawn Russell Could Serve 30 Years in Prison for Crypto Fraud
Rashawn Russell pled guilty to taking part in a conspiracy in which he ran the R3 Crypto Fund, a false cryptocurrency investment fund, according to a Sept. 19 statement from the US Department of Justice (DOJ). Russell scammed 29 investors out of $1.5 million between November 2020 and August 2022 by claiming to be a qualified financial broker and investment banker in order to guarantee exceptional profits on a number of cryptocurrency transactions.
Russell Departed Deutsche Bank 2 Years Ago
Following charges that arose in April, Russell’s career as an investment banker at Deutsche Bank, which he held from July 2018 until November 2021, came to an end. This instance demonstrates the challenges and dangers that exist where conventional finance and the cryptocurrency industry converge.
Russell leveraged investor interest in cryptocurrency markets to perpetrate a scheme to defraud clients who trusted him.
Breon Peace, United States Attorney
According to the indictment, Russell misled his investors by sending them altered copies of his bank balance. In another instance, when a customer tried to withdraw money from one of their cryptocurrency investments, Russell never actually delivered the money but instead faked a money transfer confirmation and sent it to his victim.
Prosecutors claim that the majority of the $1.5 million that he received from his victims was never used to buy crypto assets. Rather, Russell misappropriated the money and used it “for his personal benefit, to gamble, and to repay earlier investors” in the plan.
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