What Are the Charges?
A Connecticut man has been charged in a 21-count federal indictment tied to an alleged cryptocurrency investment scheme that prosecutors say diverted investor funds to an offshore gambling platform. The U.S. Department of Justice announced the charges on Thursday.
Elmin Redzepagic is accused of posing as an experienced cryptocurrency investor while losing nearly $1 million of other people’s money on Stake.com between May 2021 and March 2025. According to the indictment, Redzepagic told investors he generated high returns, but instead directed funds to the online gambling site.
He faces three counts of making false statements to IRS Criminal Investigation agents, seven counts of wire fraud, and 11 counts of international money laundering. Each false-statement charge carries a maximum penalty of five years in prison, while the wire fraud and international money laundering counts carry up to 20 years each.
Investor Takeaway
How Did the Alleged Scheme Work?
Prosecutors said Redzepagic “held himself out to investors as a cryptocurrency investor who earned high rates of return,” building credibility before requesting additional funds. According to the indictment, he abused investor trust and “lulled” them into making further investments by claiming continued profitability.
Authorities also allege that Redzepagic falsely told investors that extra “gas fees” were required to withdraw profits from their accounts. Those profits, according to the government, did not exist.
Between 2021 and 2025, funds entrusted to Redzepagic were allegedly sent to Stake.com, an offshore gambling platform, where the money was lost. The indictment does not detail specific trading activity or digital assets involved, focusing instead on the flow of funds and representations made to investors.
Who Else Is Involved?
The Justice Department release states that Redzepagic claimed he worked as part of a broader team, including an individual referred to as “The Chef,” described as the supposed ringleader. The filing does not clarify whether “The Chef” is a separate person who has been identified or charged.
Authorities have not provided additional details about other potential participants. It remains unclear whether the case will expand beyond the charges currently filed against Redzepagic.
What Happens Next?
Redzepagic pleaded not guilty during a court hearing on Thursday. He was released on a $500,000 bond while the case proceeds through the federal court system.
If convicted on all counts, he faces the possibility of decades in prison due to the stacking of wire fraud and international money laundering charges. Federal sentencing guidelines will ultimately depend on factors including financial losses and the number of victims.
