A 24-year-old Connecticut man has been federally indicted for allegedly defrauding crypto investors of nearly $1 million and gambling the proceeds away on an offshore crypto betting platform. Federal prosecutors say Elmin Redzepagic marketed himself as a skilled digital-asset manager who delivered high returns. Instead, the Department of Justice alleges, Redzepagic collected investor funds and routed them to Stake — a controversial offshore crypto casino — where he lost more than $950,000 of client money. A New Haven grand jury returned an indictment last month charging Redzepagic with seven counts of wire fraud, 11 counts of international money laundering, and three counts of making false statements to IRS criminal investigators. If convicted on every count, he faces as much as 375 years behind bars. On Thursday he pleaded not guilty in federal court in Hartford and was released on a $500,000 bond. According to the DOJ and the IRS, Redzepagic built an elaborate sales pitch to convince victims they were investing in a legitimate crypto business. Prosecutors say he claimed to work for a mysterious “crypto guru” known only as “The Chef,” who supposedly dictated trading decisions and generated steady profits for investors. The indictment alleges the scheme used repeated tactics to extract more money — including demands for additional “network gas” fees to release funds — and that Redzepagic sometimes made large “lulling” payments to placate clients while the scheme continued. The government further alleges he gave false statements to IRS agents during a 2023 interview and maintained the operation through March 2025. The case highlights persistent risks in the crypto space: platforms operating offshore, promises of outsized returns, and requests for extra payments framed as fees. The prosecution is ongoing, and the allegations have not been proven in court. Read more AI-generated news on: undefined/news

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