A 25-year-old Connecticut man has pleaded responsible to federal fraud and cash laundering expenses after utilizing cash entrusted to him for cryptocurrency investments to gamble on offshore platform Stake.com, inflicting losses of greater than $1.16 million.
Elmin Redzepagic, of Wolcott, entered his plea on October 19 earlier than U.S. District Judge Kari A. Dooley in Bridgeport. The former Southern Connecticut State University basketball participant admitted taking part in a scheme that defrauded greater than 10 victims between May 2021 and March 2025.
According to federal prosecutors, Redzepagic introduced himself as a profitable cryptocurrency investor able to producing substantial returns. He persuaded people to switch funds for funding functions however as a substitute directed the cash towards on-line playing.
The scheme resulted in confirmed web losses of $1,159,945.34, based on the U.S. Attorney’s Office for the District of Connecticut.
Redzepagic pleaded responsible to 2 counts of wire fraud, one depend of worldwide cash laundering and one depend of constructing a false assertion to federal investigators.
Fake Investment Profits Used to Demand Additional Payments
Redzepagic satisfied victims that their cryptocurrency investments had generated vital earnings.
When traders tried to withdraw their supposed earnings, he demanded further funds described as “gas fees.”
Although gasoline charges are official transaction prices related to cryptocurrency networks, prosecutors mentioned Redzepagic used the time period to acquire additional funds from victims.
According to CT Insider, he additionally claimed to work with an funding group led by a mysterious determine generally known as “The Chef,” who supposedly managed the distribution of earnings.
The clarification helped account for delays in processing withdrawals whereas sustaining the looks of a official funding operation.
Investigators discovered that Redzepagic had transferred the funds to Stake.com, utilizing the playing platform to obtain funds and generate cryptocurrency addresses for Bitcoin transfers.
He additionally made occasional funds to traders to reassure them that their cash remained safe.
Prosecutors described these transactions as “lulling” funds meant to keep up victims’ confidence whereas the fraudulent exercise continued.
The cash was in the end misplaced by means of playing on the platform.
Federal Investigation Uncovers Additional False Claims
The scheme started whereas Redzepagic was nonetheless related to Southern Connecticut State University’s basketball programme.
He performed for the college between 2019 and 2023, showing in 31 video games and averaging 1.7 factors per sport.
During a September 2023 interview with Internal Revenue Service Criminal Investigation brokers, Redzepagic made a number of false statements about his actions.
According to the unique indictment, he denied persevering with to make use of an offshore playing platform and claimed one other particular person, whom he known as “Greg,” had doubled traders’ cash.
Investigators decided that Greg didn’t exist.
A federal grand jury subsequently charged Redzepagic with 21 offences, together with seven counts of wire fraud and 11 counts of worldwide cash laundering. Three further expenses involved false statements to investigators.
Authorities arrested him on February 12, 2026, after which he initially denied wrongdoing.
At the time of his indictment, prosecutors estimated the monetary losses at roughly $950,000. The up to date quantity introduced following his responsible plea exceeded $1.16 million.
The case concerned greater than 10 victims who had entrusted Redzepagic with funds underneath the idea that he would make investments them in cryptocurrency.
Sentencing Scheduled for January 2027
Redzepagic is scheduled to look for sentencing on January 11, 2027, earlier than Judge Dooley.
Each wire fraud depend carries a statutory most sentence of 20 years in jail. The worldwide cash laundering offence carries the identical most, whereas the false-statement cost is punishable by as much as 5 years.
The courtroom will decide the precise sentence based mostly on the relevant authorized necessities and circumstances of the case.
Redzepagic stays free on a $500,000 bond pending sentencing.
The Internal Revenue Service’s Criminal Investigation division investigated the scheme, and Assistant U.S. Attorney Susan Wines is dealing with the prosecution.
The responsible plea establishes Redzepagic’s admission to the 4 federal offences, with the January listening to set to find out the penalties arising from his fraudulent dealing with of traders’ funds.
