Key Takeaways
- • Elmin Redzepagic, 25, of Wolcott, Connecticut, pleaded guilty in Bridgeport federal court to offenses tied to a $1.15 million cryptocurrency fraud scheme that victimized more than 10 investors, according to the U.S. Attorney for the District of Connecticut.
- • The report identifies total investor losses of $1,159,945, with the funds gambled away on Stake.com, an offshore gambling platform, rather than invested in crypto as promised.
- • Redzepagic faces a sentencing date of Jan. 11, 2027, and pleaded guilty to two counts of wire fraud, one count of international money laundering, and one count of making a false statement to the IRS Criminal Investigation Division.
- • The scheme ran from May 2021 to March 2025, using "gas fee" demands and "lulling" payments to keep victims from withdrawing funds or raising alarms.
Summary
A 25-year-old cryptocurrency trader from Wolcott, Connecticut, Elmin Redzepagic, pleaded guilty on Monday in Bridgeport federal court to charges stemming from a cryptocurrency fraud scheme, according to a report from the U.S. Attorney for the District of Connecticut. The U.S. Attorney's office identifies total losses to investors of $1,159,945, while the case was described in initial coverage as a $1.15 million scheme.
Court documents and statements show that Redzepagic presented himself to investors as a cryptocurrency investor capable of generating high rates of return. The scheme ran from May 2021 until March 2025. After receiving initial investments, he told victims they had earned significant profits but needed to pay additional "gas fees" before they could withdraw them. Prosecutors told the court that he did not invest victims' funds in cryptocurrency. Instead, he transferred them to Stake.com, an offshore gambling platform, which he used to receive and hold scheme proceeds. He also used the platform to generate cryptocurrency addresses for victims to send Bitcoin to him, and to make large "lulling" payments that kept victims engaged throughout the scheme. Redzepagic ultimately lost large sums of victims' money gambling on Stake.com.
Redzepagic said he worked on a team that included an individual known as "The Chef," who prosecutors describe as having led the scheme and determined how, when and whether investors received their purported profits. The report does not detail any charges against that individual in the coverage provided.
Redzepagic pleaded guilty to two counts of wire fraud, each carrying a maximum of 20 years in prison, and one count of international money laundering, punishable by up to 20 years. He also pleaded guilty to one count of making a false statement to the IRS Criminal Investigation Division, which could add five years. The false statement count stems from an interview with IRS Criminal Investigation agents in September 2023, during which he lied several times. He was arrested on Feb. 12 and is released on a $500,000 bond pending sentencing, scheduled for Jan. 11, 2027. The case was investigated by the IRS Criminal Investigation Division.
Court documents and statements show that Redzepagic presented himself to investors as a cryptocurrency investor capable of generating high rates of return. The scheme ran from May 2021 until March 2025. After receiving initial investments, he told victims they had earned significant profits but needed to pay additional "gas fees" before they could withdraw them. Prosecutors told the court that he did not invest victims' funds in cryptocurrency. Instead, he transferred them to Stake.com, an offshore gambling platform, which he used to receive and hold scheme proceeds. He also used the platform to generate cryptocurrency addresses for victims to send Bitcoin to him, and to make large "lulling" payments that kept victims engaged throughout the scheme. Redzepagic ultimately lost large sums of victims' money gambling on Stake.com.
Redzepagic said he worked on a team that included an individual known as "The Chef," who prosecutors describe as having led the scheme and determined how, when and whether investors received their purported profits. The report does not detail any charges against that individual in the coverage provided.
Redzepagic pleaded guilty to two counts of wire fraud, each carrying a maximum of 20 years in prison, and one count of international money laundering, punishable by up to 20 years. He also pleaded guilty to one count of making a false statement to the IRS Criminal Investigation Division, which could add five years. The false statement count stems from an interview with IRS Criminal Investigation agents in September 2023, during which he lied several times. He was arrested on Feb. 12 and is released on a $500,000 bond pending sentencing, scheduled for Jan. 11, 2027. The case was investigated by the IRS Criminal Investigation Division.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.