DOJ Charges Connecticut Man in $950,000 Crypto Investment Fraud

TheNewsCryptoPublicado a 2026-02-13Actualizado a 2026-02-13

Resumen

A 24-year-old Connecticut man, Elmin Redzepagic, has been charged with a 21-count indictment for allegedly orchestrating a crypto investment fraud scheme that resulted in approximately $950,000 in losses. According to the DOJ, Redzepagic promised investors substantial returns by trading cryptocurrency on their behalf. Instead of investing the funds, he transferred them to an offshore gambling platform, Stake.com. He faces multiple charges including wire fraud, international money laundering, and making false statements to the IRS. Redzepagic appeared in court, denied the charges, and was released on a $500,000 bond. This case emerges amid a broader increase in crypto-related fraud, with losses reaching $370.3 million in January 2026 alone.

A Connecticut man has been charged with a 21-count indictment for allegedly running a crypto fraud scheme that defrauded several investors and lost $950,000 of their funds. As the U.S. Attorney’s Office for the District of Connecticut announced on February 12.

According to the DOJ release, his name is Elmin Redzepagic, a 24-year-old who asked for funds from investors by promising to trade crypto on their behalf and generate substantial returns. Once he got victims, he told them they had earned a substantial profit but had to pay additional fees, which were gas fees to withdraw it, as the incident happened between approximately May 2021 and March 2025.

Further, he claimed he was part of a team that included an individual known as “The Chef,” who was described as the alleged ringleader. However, it remains unclear whether that ringleader is a separate individual who has not yet been identified.

But, as promised, he did not invest the funds in crypto; instead, he sent them to an offshore gambling platform named Stake.com, which led to a loss of $950,000 victims’ funds

Then, on January 20, 2026, he was charged with, “seven counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; 11 counts of international money laundering, an offense that carries a maximum term of imprisonment of 20 years on each count; and three counts of making a false statement to IRS Criminal Investigation agents, an offense that carries a maximum term of imprisonment of five years on each count,” as per the DOJ release.

Finally, he appeared in the federal court in Hartford on February 12, where he denied the charges and did not admit to the crime; however, the judge released him on a $500,000 bond.

Digital Asset Fraud Climbs

With that, according to blockchain security firm CertiK, crypto frauds and breaches totaled $370.3 million in January 2026, the biggest monthly figure in over a year. The figure indicates an almost fourfold rise year on year from January 2025 losses, mainly through phishing and social engineering scams.

While Connecticut case highlights the retail-focused crypto fraud, as scams and phishing attacks continue to account for a significant share of digital asset losses.

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Preguntas relacionadas

QWhat is the total amount of funds that Elmin Redzepagic is accused of defrauding from investors?

A$950,000

QWhat specific charges did the DOJ bring against Elmin Redzepagic, and what are the maximum prison sentences for each?

AHe was charged with seven counts of wire fraud (max 20 years per count), eleven counts of international money laundering (max 20 years per count), and three counts of making a false statement to IRS agents (max 5 years per count).

QInstead of investing the funds in cryptocurrency as promised, what did Redzepagic do with the victims' money?

AHe sent the funds to an offshore gambling platform named Stake.com.

QAccording to the blockchain security firm CertiK, what was the total value of crypto fraud and breaches in January 2026?

A$370.3 million

QWhat was the outcome of Elmin Redzepagic's court appearance on February 12?

AHe pleaded not guilty to the charges and was released on a $500,000 bond.

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