Former Deutsche Bank Executive Receives 41-Month Sentence for Cryptocurrency Fraud
Summary:
Rashawn Russell, a former investment banker and Deutsche Bank executive, has been sentenced to 41 months in prison for conducting a cryptocurrency scam and an unrelated access device fraud. Russell, who had operated the fraudulent R3 Crypto Fund between November 2020 and August 2022, used investors' funds for personal benefit or to pay other investors. He's also been ordered to pay $1.5 million in restitution. In another case, Russell acquired 97 bank cards under 43 identities for fraudulent transactions. The report also covers other recent legal actions in the cryptocurrency realm, highlighting the increasing scrutiny from U.S. law enforcement agencies.
On the last day of May, Rashawn Russell, a former investment banker, received a 41-month prison sentence in Brooklyn's Eastern District Court of New York for perpetrating a cryptocurrency deception and unrelated access device fraud scheme. The earlier Deutsche Bank executive admitted his guilt to these offenses in September. The Department of Justice (DOJ) states that between November 2020 and August 2022, Russell managed the illicit R3 Crypto Fund. The operation pledged to generate sizeable, and at times guaranteed, returns from cryptocurrency investments. However, the reality saw Russell misusing investor funds for personal use or to reimburse other investors. Rashawn Russell also declared he had transferred money to investors wanting refunds, which was a false claim. Russell was an authorized broker with the Financial Industry Regulatory Authority. He could have potentially faced a 30-year imprisonment for these offenses. Furthermore, he was dictated to repay $1.5 million to the victims of the cryptocurrency fraud.
In a separate case, from September 2021 to June 2023, Russell acquired 97 bank cards under at least 43 identities, planning to use them for fraudulent transactions. On the crypto-related offense, Russell was indicted in April 2023, pledging guilty to the charges four months later. Russell's sentencing adds to a surge of fraudulent actors facing punishment over the past couple of months. On April 12, Shakeeb Ahmed, a computer security engineer, was dealt a three-year sentence with three years of supervised release by the Southern New York District Court for flash loan attacks on crypto exchanges in 2022.
On May 15, the DOJ filed charges against brothers Anton Peraire-Bueno and James Pepaire-Bueno for orchestrating wire fraud, conspiracy to commit wire fraud and conspiracy to launder money by manipulating the Ethereum blockchain. On May 18, Thomas John Sfraga confessed to a wire fraud offense related to a non-existent crypto wallet and other plots. The same day saw the arrests of two individuals on seven counts involving international money laundering and money laundering associated with a pig-slaughter crypto scam worth over $73 million. The heat is on from U.S. law enforcement agencies to clamp down on crimes linked to cryptocurrency.
Published At
5/31/2024 12:56:40 AM
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