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.
- • The cryptocurrency investment fraud scheme, which ran from May 2021 to March 2025, defrauded more than 10 victims of about $1.1 million, with the funds lost to online gambling.
- • Investigators found Redzepagic did not invest victim funds in cryptocurrency; instead he transferred them to the offshore gambling site Stake.com, where his gambling losses totaled about $1,159,945.
- • Redzepagic faces a maximum of 65 years in prison and is scheduled for sentencing on January 11, 2027; he is free on a $500,000 bond.
Summary
A Connecticut man has pleaded guilty to federal charges tied to a cryptocurrency fraud scheme that cost more than 10 people a total of about $1.1 million, according to the U.S. Attorney's Office for the District of Connecticut and reporting by the Hartford Courant. Elmin Redzepagic, 25, of Wolcott, appeared in federal court in Bridgeport and entered guilty pleas 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. He was formally charged in February.
According to authorities, Redzepagic posed as a cryptocurrency investor who generated high rates of return between May 2021 and March 2025. After collecting funds from investors, he told them they had earned a "substantial profit" but must pay additional "gas fees" to withdraw it. Investigators said he claimed to work within a team led by an individual known as "The Chef," who purportedly determined "who, how, and when investors would receive their profits."
Investigators found that Redzepagic never invested the victims' funds in cryptocurrency. Instead, he transferred the money to Stake.com, an offshore gambling site, where he used the platform to hold the funds and generate cryptocurrency addresses that victims used to send him Bitcoin. He also used the site to make large "lulling" payments to victims to keep the scheme going. Officials said his gambling losses on the site totaled about $1,159,945, sourced from more than 10 victims. Federal officials also said he made several false statements during a September 2023 interview with IRS criminal investigation agents.
Redzepagic is free on a $500,000 bond and is scheduled to be sentenced on January 11, 2027. The charges carry a maximum penalty of 65 years in prison.
According to authorities, Redzepagic posed as a cryptocurrency investor who generated high rates of return between May 2021 and March 2025. After collecting funds from investors, he told them they had earned a "substantial profit" but must pay additional "gas fees" to withdraw it. Investigators said he claimed to work within a team led by an individual known as "The Chef," who purportedly determined "who, how, and when investors would receive their profits."
Investigators found that Redzepagic never invested the victims' funds in cryptocurrency. Instead, he transferred the money to Stake.com, an offshore gambling site, where he used the platform to hold the funds and generate cryptocurrency addresses that victims used to send him Bitcoin. He also used the site to make large "lulling" payments to victims to keep the scheme going. Officials said his gambling losses on the site totaled about $1,159,945, sourced from more than 10 victims. Federal officials also said he made several false statements during a September 2023 interview with IRS criminal investigation agents.
Redzepagic is free on a $500,000 bond and is scheduled to be sentenced on January 11, 2027. The charges carry a maximum penalty of 65 years in prison.
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