Rashawn Russell could face up to 30 years in prison after pleading guilty to investment scheme fraud and identity theft.
Rashawn Russell, a former investment banker and registered broker who worked at Deutsche Bank, pleaded guilty to charges related to investment fraud after orchestrating an elaborate cryptocurrency scheme to defraud investors.
The former Deutsche Bank executive could face up to 30 years in prison for his crimes.
Russell to pay more than $1.5 million in damages
The U.S. Department of Justice (DOJ) announced Russell’s guilty plea in a press release on September 19, 2023. According to the DOJ, as part of the plea agreement, the former Deutsche Bank employee will pay more than $1.5 million in restitution and could face up to 30 years in prison after sentencing.
Russell operated a cryptocurrency investment fund called R3 Crypto Fund from November 2020 to August 2022, which promised to help investors earn strong returns on their cryptocurrency investments.
However, the 27-year-old former investment banker is suspected of misappropriating users' assets, using the raised funds to repay old investors, as well as for personal use and gambling. According to prosecutors, Russell was able to deceive users by creating false documents that showed a large amount of liquidity. The fraudulent cryptocurrency fund managed to defraud $1.5 million from unsuspecting investors.
In addition to the cryptocurrency fund, the former Deutsche Bank executive also participated in an identity theft scheme between September 2021 and June 2023, fraudulently obtaining credit cards and accessing other devices using third-party names to conduct unauthorized transactions. Russell also pleaded guilty to participating in an identity theft scheme.
Deutsche Bank’s Latest Cryptocurrency Effort
Although Russell initially denied the charges against him after being detained in April 2023, the latest developments mark a significant turn of events. As CryptoPotato previously reported, Russell had intended to plead guilty to cryptocurrency fraud.
Breon Peace, the U.S. Attorney for the Eastern District of New York, said in a statement:
“Russell exploited investor interest in the cryptocurrency markets to perpetrate a scheme to defraud clients who trusted him. The swift conviction in this case highlights this office’s commitment to holding bad actors in the digital asset markets accountable.”
Although Deutsche Bank has not been accused of any wrongdoing and has not made any comments following Russell's arrest, the German financial institution has pledged to cooperate with law enforcement during the investigation. The investment bank recently partnered with Swiss startup Taurus to provide digital asset custody and tokenization services to clients. #加密货币诈骗 #德意志银行
