Former investment banker, Rashawn Russell, has been sentenced to over three years in prison for wire fraud related to a cryptocurrency scheme. Russell had been soliciting investments for his R3 Crypto Fund since November 2020, promising investors returns of up to 100%. He used falsified documents to convince investors of the scheme's legitimacy, and misappropriated funds for personal use and to repay earlier investors. The fraud led to approximately $1.5 million in investor losses, and Russell has been ordered to pay this amount in restitution.

The Department of Justice (DOJ) is intensifying its crackdown on crypto fraud, with numerous arrests made recently. This includes the arrest of two individuals involved in a $73 million crypto scam, and the charging of two brothers for exploiting the Ethereum blockchain to steal $25 million in crypto. Despite these incidents, the potential of DeFi and BRC 20 remains strong, and the market continues to show promise.