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Connecticut Man Pleads Guilty to Cryptocurrency Fraud Linked to Offshore Gambling
Elmin Redzepagic, a 25-year-old resident of Wolcott, Connecticut, has pleaded guilty to charges stemming from a cryptocurrency fraud scheme that misled investors and diverted their funds to an offshore gambling site. The guilty plea was secured by federal prosecutors before U.S. District Judge Kari A. Dooley in Bridgeport.
Redzepagic faced two counts of wire fraud, one count of international money laundering, and one count of making a false statement to IRS agents. According to the U.S. Attorney’s Office for the District of Connecticut, from May 2021 to March 2025, he solicited investments by promising substantial returns in digital assets. He also requested additional payments, referred to as gas fees, before allowing any withdrawals.
Victims were led to believe that a group, including an individual known as “The Chef,” was responsible for payout decisions. Instead of investing the funds, Redzepagic transferred the money to Stake.com, where he gambled and ultimately lost, resulting in a total loss of over $1.15 million for more than ten investors.
Redzepagic was arrested on February 12 and is currently free on a $500,000 bond. His sentencing is scheduled for January 11, 2027. Each wire fraud count carries a potential sentence of up to 20 years, while the money laundering charge has the same maximum penalty, and the false statement charge could lead to five years in prison.
The investigation was conducted by the IRS Criminal Investigation unit, with Assistant U.S. Attorney Susan Wines overseeing the prosecution.
FAQ
What charges did Elmin Redzepagic plead guilty to?
Elmin Redzepagic pleaded guilty to two counts of wire fraud, one count of international money laundering, and one count of making a false statement to IRS agents.
What was the total loss incurred by the victims in this fraud scheme?
The total loss incurred by the victims was over $1.15 million for more than ten investors.
What was the purpose of the funds that Redzepagic solicited from investors?
Redzepagic solicited funds from investors by promising substantial returns in digital assets, but instead diverted the money to an offshore gambling site.
When is Elmin Redzepagic's sentencing scheduled?
Elmin Redzepagic's sentencing is scheduled for January 11, 2027.
What is the maximum potential sentence for the charges Redzepagic faces?
Each wire fraud count and the money laundering charge carries a potential sentence of up to 20 years, while the false statement charge could lead to five years in prison.