A Connecticut resident has pleaded guilty in federal court to charges tied to a cryptocurrency fraud scheme that prosecutors said diverted investor money to an offshore gambling platform. The case centers on Elmin Redzepagic, 25, of Wolcott, who admitted to wire fraud, international money laundering and making a false statement to IRS agents.
According to prosecutors, the scheme ran for several years and caused more than $1.15 million in losses for over ten victims. Authorities said the funds were not invested as promised and were instead sent to Stake.com, where they were gambled away.
Guilty plea entered in Bridgeport
Redzepagic entered his guilty plea before U.S. District Judge Kari A. Dooley in Bridgeport. He pleaded guilty to two counts of wire fraud, one count of international money laundering and one count of making a false statement to IRS agents.
The plea marks a significant step in the federal case, though sentencing has not yet taken place. Court proceedings are set to continue with a sentencing hearing scheduled for January 11, 2027.
How prosecutors say the scheme worked
Prosecutors said that from May 2021 through March 2025, Redzepagic solicited money from victims by claiming he could generate strong returns through digital-asset investments. After people sent funds, they were allegedly told they needed to pay additional amounts described as gas fees before any withdrawals could be processed.
Victims were also told that decisions on payouts were controlled by a group that included a figure referred to as “The Chef.” Authorities said those representations were part of the fraud and that the promised investment activity did not occur.
Losses exceeded $1.15 million
Instead of investing the money, prosecutors said Redzepagic routed the funds to Stake.com, an offshore gambling site. There, the money was gambled and lost, according to the government.
Federal authorities said the scheme caused a combined loss of $1,159,945.34 across more than ten victims. The case links a cryptocurrency investment pitch with the movement of funds to an online betting platform rather than any legitimate trading or investment strategy.
False statement charge and next step
In addition to the fraud and money laundering counts, Redzepagic admitted to making a false statement to IRS agents. Prosecutors said he provided false information during an interview in September 2023.
He was arrested on February 12 and remains free on a $500,000 bond while awaiting sentencing. The next confirmed milestone in the case is the January 11, 2027 sentencing date, when the court is expected to determine his punishment.
Source: dailyhodl.com