Crypto Scam Lawsuit Links Alleged $1M Bitcoin Losses to Bets on Stake.com

Federal prosecutors in Connecticut have launched a new case that places crypto gambling platform Stake.com at the center of an alleged investment fraud scheme that ran for nearly four years. A 24-year-old man faces multiple federal charges after authorities accused him of soliciting Bitcoin from investors under the promise of steady returns, only to divert the funds elsewhere.

A Guilty Sentence Could Mean Decades Behind Bars

According to the January 20 indictment, Elmin Redzepagic presented himself as an expert digital asset trader, promising clients dependable profits from cryptocurrency market activities. The defendant reportedly misled victims into believing their investments were steadily gaining value. However, when investors attempted to withdraw their winnings, they started encountering hurdles.

Redzepagic required customers to pay extra processing fees before releasing the funds. He even made excuses for delays by blaming a shadowy trading collective. Federal authorities say that this fanciful narrative masked a different reality. Prosecutors claim that instead of using investor funds for legitimate trading activities, Redzepagic moved substantial Bitcoin amounts to Stake.com accounts, where he lost roughly $950,000 during online gambling.

The indictment includes seven counts of wire fraud, 11 counts of international money laundering, and three counts of making false statements to agents of the Internal Revenue Service’s Criminal Investigation Division. Each fraud and money laundering charge carries a potential maximum sentence of 20 years if proven by the court.

The Defendant Denied Any Wrongdoing

Redzepagic appeared in federal court in Hartford before Magistrate Judge Thomas O. Farris last Thursday, where he entered a not guilty plea to all counts. The court released him on a $500,000 bond pending further proceedings. Authorities emphasized that Redzepagic remains innocent until proven otherwise. Prosecutors must prove their case beyond a reasonable doubt before any conviction can be secured.

Investigators believe the alleged scheme operated between May 2021 and March 2025. During that time, Redzepagic reportedly directed victims to send cryptocurrency to wallet addresses under his control. The IRS Criminal Investigation Division is leading the probe, with assistant US attorney Susan Wines assigned to prosecute the case.

The situation marks another reputational challenge for Stake.com. In January, rapper Drake and streamer Adin Ross were named in a class-action complaint alleging that their promotional activities on the platform’s dual-currency system encouraged real-money wagering under the guise of low-risk gameplay. Such controversies also align with rising scrutiny by state regulators.