An investment banker who worked for Deutsche Bank has been charged with committing cryptocurrency-related fraud. The Brooklyn native is accused of misappropriating funds from victims who were promised large returns from cryptocurrency investments in a Ponzi-like scheme.
Former Deutsche Bank investment banker arrested and charged with defrauding crypto investors
Rashawn Russell, a 27-year-old investment banker and registered broker from Brooklyn, N.Y., was arrested on April 10 on criminal charges related to his alleged involvement in operating a crypto investment fraud scheme, the U.S. Department of Justiceannounced Tuesday
Prosecutors allege that Russell defrauded and lured several investors with promises of large and even guaranteed returns from cryptocurrency investments and transactions. However, they say he used the funds for his own benefit, gambling and repaying other investors to keep the scheme going.
The indictment alleges that the defendant repeatedly failed to provide investors with the promised rate of return. In addition, when some demanded repayment of their investments, he falsely claimed that he had sent the money.
The document only states that he worked as an investment banker from July 2018 to November 2021, but Reuters reported that Russell became an investment banking analyst at Deutsche Bank in July 2018 and was promoted to associate in July 2020.
Refusing to comment specifically on ongoing litigation, the bank said through a spokesperson that it “regularly supports law enforcement and regulatory oversight activities, including responding and cooperating appropriately with authorized investigations and proceedings.”
Russell solicited investments from friends, former classmates, and colleagues to convince them that he had developed a successful strategy for altcoin trading, Bloomberg detailed in its report. He wascharged with one count of wire fraudand faces up to 20 years in prison if convicted. The banker pleaded not guilty and was released on $200,000 bail.
“Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” Eastern District of New York U.S. Attorney Breon Pease is quoted as saying.
“Our office will continue to aggressively pursue fraudsters who run these schemes against investors in the digital asset markets,” he stressed. Russell’s indictment comes amid an ongoing crackdown on crypto-related fraud in the United States.
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