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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