In connection with an alleged cryptocurrency scam, a former investment banker has been detained and charged with wire fraud.
Rashawn Russell, a Financial Industry Regulatory Authority-registered broker, has been charged with one count of wire fraud in connection with his alleged participation in the conspiracy, according to a news statement from the US Department of Justice.
According to the press release, Russell reportedly persuaded investors that he would utilize their cash for cryptocurrency investments, that they would earn big and, in some cases, guaranteed returns, and then plundered much of their assets.
As investors demanded repayment, Russell reportedly claimed fraudulently that he had transferred them the funds they had given him to invest, according to the statement.
This study is the latest in a string of allegations that Bitcoin claims have been exploited to put a fresh twist on old-fashioned techniques of deception.
For example, in November 2022, a New York man pled guilty to defrauding consumers in a case in which he claimed to supply them with crypto-mining machines (“Miners”) and Miner hosting services but instead retained the money and failed to deliver.
