Federal court docket in Brooklyn, New York, has indicted a former funding banker and registered dealer of allegedly defrauding quite a few traders by promising earnings from bogus cryptocurrency investments and embezzling the monies obtained to fund his way of life.

Paperwork with the court docket allege that the defendant, Rashawn Russell, misused the rising curiosity in crypto investing to mislead traders. Russell persuaded a number of traders to reinvest their fiat financial savings into cryptocurrencies, typically promising substantial or “assured” returns. Nonetheless, it’s alleged that Russell embezzled traders’ cash to fund his private way of life.

Breon Peace, United States Legal professional for the Jap District of New York, introduced the court docket’s intention to pursue the case towards the previous banker:

“As claimed, Russell turned the demand for cryptocurrency funding right into a scheme to rip-off quite a few traders to fund his way of life. This workplace will proceed to aggressively prosecute scammers working these schemes towards traders within the digital asset markets.”

After convincing traders of the pretend cryptocurrency funding program primarily based on his credibility as a former funding banker and registered dealer with the Monetary Trade Regulatory Authority, Russell allegedly used their cash to gamble and repay different traders.

In keeping with info shared by the US Division of Justice (DOJ), Russell fabricated paperwork to mislead unwary traders in regards to the standing of their crypto investments. The forgery altered a picture of a financial institution’s website to indicate pretend balances and financial institution switch confirmations.

If convicted, Russell faces a maximum of 20 years in jail. The DOJ additionally urged different traders to return ahead if they believe they could be a sufferer of the alleged crime.

Associated: Bitcoin tops Donald Trump, Weapons in America: Google Trends

On April 6, the Washington State Division of Monetary Establishments issued a consumer safety warning towards crypto trade Eucoinotrade.

In keeping with the report, Eucoinotrade facilitated an “advance cost rip-off” that requested customers to pay to improve accounts and withdraw funds. Whereas customers had no issues depositing funds, they encountered issues when making an attempt to withdraw funds.