Former Deutsche Bank Exec Rashawn Russell Pleads Guilty to $1.5M Cryptocurrency Fraud
A former executive of Deutsche Bank, Rashawn Russell, is facing up to 30 years of jail time after pleading guilty to charges related to a fraudulent cryptocurrency trading scheme. It was earlier this year when he was first charged with fraud.
Russell worked as an investment banker and FINRA-registered broker with Deutsche Bank. This week, he admitted to his unlawful acts of defrauding almost 30 investors and running off with their cash amounting to about $1.5 million.
The 27-year-old pleaded guilty in New York federal court for the R3 Crypto Fund scam which he operated. His charges also include identity theft after he illegally obtained more than 15 credit cards and other access devices to carry out unauthorized transactions.
For all of his crimes, the authorities decided that Russell is not only going to jail, but he has to pay over $1.5 million in restitution as well. According to CoinTelegraph, between November 2020 and August 2022, the former Deutsche Bank employee swindled 29 investors by using his reputation as an investment banker and licensed financial broker.
He promised investors that he would use their investments to generate large and guaranteed returns from a series of crypto investments. His victims reportedly include former colleagues at Deutsche Bank, former college classmates, and friends.
"Russell leveraged investor interest in cryptocurrency markets to perpetrate a scheme to defraud clients who trusted him," Attorney Breon Peace said in a press release that was published by the U.S. Attorney's Office for the Southern District of New York earlier this week. "The swift conviction in this case underscores this Office's commitment to holding bad actors in the digital asset markets accountable."
USPIS Inspector-in-Charge Shen also stated, "The Postal Inspection Service proudly protects Americans from ever-evolving threats of fraud. This case showcases our dedication to bring to justice those who violate their fiduciary duty to their clients."
Photo by: Kanchanara/Unsplash
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