📣 Former Banker Sentenced for Crypto Fraud
posted 31 May 2024
A federal court in Brooklyn has sentenced former investment banker Rashawn Russell to 41 months in prison for his involvement in a cryptocurrency fraud scheme and identity theft. Investors suffered losses of approximately $1.5 million, which Russell must now repay.
From November 2020 to August 2022, Russell misled investors by promising high, even guaranteed, returns on cryptocurrency investments. Instead, he used the funds for personal gains such as repaying other investors, purchasing luxury items, and gambling.
In some instances, Russell falsely assured investors that he had refunded their money. Additionally, he stole at least 97 credit cards and over 43 identities, primarily from gyms, and used them for illegal transactions. Russell pleaded guilty in September 2023.
Previously, Ryan Salame, a former FTX executive, received a 7.5-year prison sentence for fraud. This marked the first conviction related to the exchange's bankruptcy following the 25-year sentencing of its CEO, Sam Bankman-Fried.
From November 2020 to August 2022, Russell misled investors by promising high, even guaranteed, returns on cryptocurrency investments. Instead, he used the funds for personal gains such as repaying other investors, purchasing luxury items, and gambling.
In some instances, Russell falsely assured investors that he had refunded their money. Additionally, he stole at least 97 credit cards and over 43 identities, primarily from gyms, and used them for illegal transactions. Russell pleaded guilty in September 2023.
Previously, Ryan Salame, a former FTX executive, received a 7.5-year prison sentence for fraud. This marked the first conviction related to the exchange's bankruptcy following the 25-year sentencing of its CEO, Sam Bankman-Fried.
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