Former investment banker Rashawn Russell was sentenced to 41 months in prison for wire fraud in a cryptocurrency scheme and an unrelated access device fraud scheme. Russell, a former Deutsche Bank executive, pleaded guilty to the charges in September.
According to the Justice Department (DOJ), Russell operated the fraudulent R3 Crypto Fund from November 2020 to August 2022. The fund claimed to make cryptocurrency investments and offer significant returns, but in reality, Russell used investors’ funds for personal gain or to repay other investors. He also falsely stated that he had wired money to investors seeking repayment.
In addition to his cryptocurrency scheme, Russell obtained 97 bank cards with at least 43 identities between September 2021 and June 2023, intending to use them for fraudulent transactions.
Russell, a registered broker with the Financial Industry Regulatory Authority, faced a potential prison sentence of 30 years. He was also ordered to pay $1.5 million in restitution to the victims of his cryptocurrency scheme.
Russell’s conviction is part of a series of recent cases involving fraud in the cryptocurrency industry. In April 2023, computer security engineer Shakeeb Ahmed was sentenced to three years in prison for flash loan attacks on crypto exchanges in 2022. On May 15, brothers Anton Peraire-Bueno and James Pepaire-Bueno were charged with wire fraud and money laundering for manipulating the Ethereum blockchain. On May 18, Thomas John Sfraga pleaded guilty to wire fraud for his involvement in a nonexistent crypto wallet and other schemes. That same day, two individuals were arrested on charges of money laundering in connection with a pig-butchering crypto scam worth over $73 million.
Enforcement agencies in the United States are intensifying their efforts to combat crypto-related crime.