Law enforcement officials in New York arrested former JPMorgan and Deutsche Bank broker Rashawn Russell on suspicion of digital asset fraud.
According to the investigation, Russell convinced a number of investors that their money would bring large profits using altcoins. However, after transferring the funds, the defendant spent them on gambling and covering his debts.
Authorities allege that the broker forged documents showing investors’ profits. He also claimed to have developed a successful altcoin trading strategy, with which he made more than 100 percent of his profits in three months.
“Russell turned the demand for cryptocurrency investments into a fraudulent scheme to defraud investors and finance his lifestyle. […] We will continue to aggressively pursue criminals who engage in such fraud in the digital asset markets,” said U.S. Attorney Breon Pease.
If Russell is proven guilty, he could face up to 20 years in prison.
Recall that in March, U.S. authorities arrested Miles Guo, a citizen of China, on charges of organizing a cryptocurrency-related fraud amounting to more than $1 billion.
In April, South Korean law enforcers imprisoned employees of local cryptocurrency exchange Coinone. They are suspected of taking bribes for listing digital assets.