Former Investment Banker Arrested for Running Cryptocurrency Fraud Scheme

A former investment banker and registered broker with the Financial Industry Regulatory Authority has been arrested in Brooklyn, New York for allegedly operating a cryptocurrency investment fraud scheme.

Rashawn Russell, 27, is accused of defrauding multiple investors by enticing them to invest with him based on false promises of using their funds for cryptocurrency investments and guaranteeing large returns. Instead, Russell allegedly misappropriated much of the investors’ assets for personal gain, gambling, and to repay other investors.

According to department of justice, the indictment also accuses Russell of repeatedly failing to repay principal investments and failing to provide promised rates of return. He faces one count of wire fraud, which carries a maximum penalty of 20 years in prison if convicted. The case is being investigated by the U.S.

Postal Inspection Service and prosecuted by the Criminal Division’s Fraud Section and the Eastern District of New York. If you are a victim, contact the Fraud Section’s Victim Witness Unit for assistance. An indictment is not a finding of guilt.