Man Pleads Not Guilty in $1M Crypto Scam Used to Fuel Gambling

The US Attorney’s Office for the District of Connecticut has announced that a man has been indicted in connection with a nearly $1-million cryptocurrency fraud scheme that was allegedly used by the perpetrator to fund his gambling expenses.

Man Charged with Setting Up Fake Crypto Investment Fund

E. R., 24, appeared before US Magistrate Judge Thomas O. Farris on Thursday, February 12, and pleaded not guilty to charges of defrauding investors via the alleged cryptocurrency scheme. 

The case was returned by a federal grand jury following an indictment that brought R. on 11 counts of international money laundering, seven counts of wire fraud, and three counts of providing false statements to the IRS.

R. is alleged to have perpetrated his crime between May 2021 and March 2025, when he presented himself as a cryptocurrency entrepreneur and convinced investors to fund his scheme, promising high returns. Ultimately, he cost investors $950,000 as part of the scheme. 

The scheme followed a familiar path, with R. securing large amounts from investors at first, and then updating them with returns that never existed. 

High Returns Promised – Not Before Paying the “Gas Fees” 

In the cases of those investors who wanted to release their funds and cash out, R. simply explained that for this to happen, he would need to pay the associated fees and costs – “gas fees”  in cryptocurrency vernacular, to make it happen. 

Some investors believed him and spent more money on the scheme, but others were reluctant and raised hackles. R. also allegedly presented himself as a part of an organization, arguing that he had a “boss” who was in charge of the funds and the only person who could release the money.

R. has been released on a $500,000 bond while he awaits further procedural actions. He is alleged to have used the money he received from investors to bankroll his online gambling.

The Department of Justice has also shared information about the online casino R. most likely used: “It is alleged that Redzepagic lost victims’ funds gambling on Stake.com, causing a net loss of a total of approximately $950,000 to multiple victims.”