Investment banker indicted on crypto fraud, used money for gambling despite offering 'guaranteed' returns

A federal court has indicted a former investment banker and registered broker for defrauding numerous investors. The man allegedly used the money for his own benefit to gamble and pay off other debts.

According to the United States Attorney's Office for the Eastern District of New York, Rashawn Russell was arraigned on an indictment for perpetrating a cryptocurrency fraud scheme after being arrested in Brooklyn, New York, on April 10, 2023.

Court documents allege that Russell sometimes "guaranteed" large returns from the cryptocurrency investments, but his promises turned out to be empty.

Much of the investors' money was misappropriated by Russell and instead used to gamble and repay other investors.