- Rashawn Russell, a former Deutsche Bank investment banker, has been arrested for crypto fraud.
- He allegedly deceived investors into thinking they would make significant profits from altcoins.
- Russell reportedly used the funds for personal gain and fabricated documents to show profits.
The US Justice Department has reported that a registered broker named Rashawn Russell has been arrested and is being charged with crypto fraud. Russell, who is a former investment banker at Deutsche Bank, could potentially face a maximum sentence of 20 years in prison. The arraignment is set to take place today in a New York court.
As per the announcement, Russell is accused of deceiving multiple investors into thinking that they would receive significant profits by investing in altcoins, which refer to various digital assets apart from Bitcoin.
When they handed over their money, he reportedly used it for personal gain, to gamble, and to pay back other investors, the Justice Department alleged.
It further claimed that Russell fabricated documents showing investors that he was successful at turning a profit.
According to the indictment by the U.S. Attorney’s Office, Eastern District of New York, Russell made assertions that he had created a profitable approach to trade altcoin cryptocurrencies and had generated returns of over 100% for investors in the past three months.
Breon Peace, the U.S. Attorney for the Eastern District of New York, stated that Russell transformed their interest in cryptocurrency investments into a fraudulent scheme to financially exploit numerous investors and support his personal lifestyle. Peace added that his office would remain committed to pursuing and prosecuting fraudsters who engage in these types of schemes against investors in the digital asset markets.
This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets.
U.S. Attorney Breon Peace
Meanwhile, Russell’s LinkedIn profile indicates that he had employment stints at JP Morgan, Moody’s, and Deutsche Bank.
Additionally, If found guilty, Russell could face a maximum sentence of 20 years in prison, shared the announcement.
