In brief
- A Connecticut man is facing up to 375 years in prison for allegedly gambling away crypto customers’ funds on Stake.
- Prosecutors say he misled clients by posing as a crypto investor working for a markets guru known as “The Chef.”
- The man pleaded not guilty this week to 21 wire fraud, money laundering, and false statements charges.
A 24-year-old Connecticut man has been accused by federal prosecutors of taking almost a million dollars from would-be crypto investors and gambling away the funds online.
The man, Elmin Redzepagic, allegedly marketed himself as a savvy crypto investor who earned high rates of return. But upon collecting funds from clients, prosecutors claim, he would deposit them in Stake, the controversial offshore crypto casino.
Redzepagic lost investors over $950,000 with such activity, the Department of Justice said.
Last month, a federal grand jury in New Haven indicted Redzepagic on seven wire fraud charges, 11 counts of international money laundering, and three counts of making false statements to IRS criminal investigators. He faces a total of 375 years in prison if found guilty on all charges.
On Thursday, Redzepagic pleaded not guilty to all charges before a federal judge in Hartford. He was released on a $500,000 bond.
According to the DOJ and IRS, the defendant created an elaborate scheme to convince investors he ran a legitimate digital asset investment business.
He claimed to work for a crypto guru known only as “The Chef,” who led the operation and decided how and when investors would receive their profits.
The Chef always earned Redzepagic’s customers substantial profits, as far as the customers were aware—but would often demand additional payments for network gas fees to release the funds.
Sometimes, Redzepagic would pay his victims large “lulling” payments to keep the scheme going, prosecutors alleged.
In 2023, the defendant was interviewed about the alleged conduct by the IRS and made several false statements, the indictment claimed. He then allegedly continued his illegal scheme until March of 2025.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
The Clarity Act Is Under Fire Due to Its Ethics Regarding Trump Coin
Democrats are investigating the Trump Coin conference due to concerns about political involvement in the crypto sector. The event's timing with the White House Correspondents Dinner raises ethical questions, especially regarding the Blockchain Regulatory Certainty Act.
CryptoBreaking56m ago
Robinhood, concerned about insider trading restrictions, limits some prediction market contracts
Robinhood takes a cautious approach in its prediction market business, excluding “market mentions” contracts that could easily trigger manipulation risks, and emphasizing that it only offers regulated event contracts to protect customer interests. Recent insider trading incidents have intensified industry concerns, and to mitigate risk, Robinhood partners with regulated platforms to ensure user identity verification.
GateNews57m ago
German hackers arrested in Bangkok over alleged cryptocurrency extortion and 74 arrest warrants for cybercrimes
A 27-year-old German hacker, Noah Christopher, was arrested in Thailand and faces up to 74 counts of cybercrime, accused of developing ransomware and providing network attack services, involving transnational cybercrime. His visa was revoked, and he is awaiting extradition to Germany.
GateNews1h ago
Sports-betting contracts are derivatives! The U.S. CFTC blocks local law enforcement and seeks regulatory authority over prediction markets
The U.S. federal government is working with the CFTC and the Department of Justice to try to shift regulatory authority over Kalshi’s prediction markets from local governments to the federal government, arguing that sports event contracts are financial derivatives. If the court backs this position, it will change the legal status of prediction markets and create uniform nationwide oversight, reducing the impact of state-level wagering laws.
CryptoCity1h ago
Recognized sports event contracts are derivatives! The U.S. CFTC blocks local law enforcement and fights for regulatory authority over prediction markets
The U.S. federal government is working jointly with the CFTC and the Department of Justice to try to shift regulatory authority over Kalshi prediction markets from local governments to the federal level, arguing that sports event contracts are financial derivatives. If the court backs this position, it will change the legal status of prediction markets and unify nationwide oversight, reducing the influence of state-level gambling laws.
CryptoCity4h ago
Court ruling: sports betting contract is a derivative! The U.S. CFTC blocks local law enforcement, seeking regulatory authority over prediction markets
The U.S. federal government is working jointly with the CFTC and the Department of Justice to try to shift regulatory authority over Kalshi prediction markets from local governments to the federal level, arguing that sports event contracts are financial derivatives. If the court backs this position, it would change the legal status of prediction markets and standardize regulation nationwide, reducing the impact of local wagering laws.
CryptoCity7h ago
