Key Takeaways
- • Elmin Redzepagic, 25, of Wolcott, Connecticut, pleaded guilty in federal court in Bridgeport to two counts of wire fraud, one count of international money laundering, and one count of making a false statement to IRS Criminal Investigation agents, according to U.S. Attorney for the District of Connecticut David Sullivan.
- • Redzepagic falsely posed as a cryptocurrency investor earning high returns, then gambled victims' funds on the offshore platform Stake.com, causing a net loss of $1,159,945.34 to more than 10 victims.
- • The scheme ran from approximately May 2021 to March 2025, using fake "gas fee" demands and "lulling" payments to keep victims from withdrawing or reporting.
- • Redzepagic faces up to decades in prison at his January 11 sentencing and is free on a $500,000 bond pending sentencing.
Summary
A Wolcott, Connecticut man has pleaded guilty to federal charges tied to a cryptocurrency investment fraud scheme, according to U.S. Attorney for the District of Connecticut David Sullivan. Elmin Redzepagic, 25, entered the pleas before U.S. District Judge Kari A. Dooley in Bridgeport on a Monday, per the release reported by Norwalk Hour. Sullivan said the charges include two counts of wire fraud, one count of international money laundering, and one count of making a false statement to IRS Criminal Investigation agents.
According to Sullivan, Redzepagic held himself out to investors between approximately May 2021 and March 2025 as a cryptocurrency investor who generated high rates of return. After victims made initial investments, he told them they had earned substantial profits but must first pay additional fees, described as gas fees, to withdraw them. Redzepagic reportedly claimed to be part of a team that included an individual known as "The Chef," who supposedly directed the operation and determined when and how investors would receive profits. Sullivan said no such investing took place; instead, Redzepagic transferred the funds to Stake.com, an offshore gambling platform.
Sullivan said Redzepagic used Stake to receive and hold scheme proceeds, generate cryptocurrency addresses for victims to send Bitcoin, and make large "lulling" payments to victims to sustain the appearance of legitimacy. He lost the funds gambling, producing a net loss of $1,159,945.34 across more than 10 victims. Redzepagic, a former Southern Connecticut State University men's basketball player, was interviewed by IRS Criminal Investigation agents in September 2023 and allegedly made several false statements during that interview.
Redzepagic was arrested February 12, 2026. He is scheduled for sentencing on January 11 and faces up to decades in prison, according to the report. He is free on a $500,000 bond pending sentencing.
According to Sullivan, Redzepagic held himself out to investors between approximately May 2021 and March 2025 as a cryptocurrency investor who generated high rates of return. After victims made initial investments, he told them they had earned substantial profits but must first pay additional fees, described as gas fees, to withdraw them. Redzepagic reportedly claimed to be part of a team that included an individual known as "The Chef," who supposedly directed the operation and determined when and how investors would receive profits. Sullivan said no such investing took place; instead, Redzepagic transferred the funds to Stake.com, an offshore gambling platform.
Sullivan said Redzepagic used Stake to receive and hold scheme proceeds, generate cryptocurrency addresses for victims to send Bitcoin, and make large "lulling" payments to victims to sustain the appearance of legitimacy. He lost the funds gambling, producing a net loss of $1,159,945.34 across more than 10 victims. Redzepagic, a former Southern Connecticut State University men's basketball player, was interviewed by IRS Criminal Investigation agents in September 2023 and allegedly made several false statements during that interview.
Redzepagic was arrested February 12, 2026. He is scheduled for sentencing on January 11 and faces up to decades in prison, according to the report. He is free on a $500,000 bond pending sentencing.
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