{"id":22610,"date":"2023-09-20T07:01:35","date_gmt":"2023-09-20T07:01:35","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/former-deutsche-bank-exec-pleads-guilty-over-r3-crypto-fund-scheme\/"},"modified":"2023-09-20T07:01:37","modified_gmt":"2023-09-20T07:01:37","slug":"former-deutsche-bank-exec-pleads-guilty-over-r3-crypto-fund-scheme","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/former-deutsche-bank-exec-pleads-guilty-over-r3-crypto-fund-scheme\/","title":{"rendered":"Former Deutsche Bank exec pleads guilty over \u2018R3 Crypto Fund\u2019 scheme"},"content":{"rendered":"

<\/p>\n

\n

A former Deutsche Bank investment banker, who was charged earlier this year in relation to a fraudulent cryptocurrency trading scheme, has pleaded guilty to investment fraud \u2014 and could face up to 30 years in prison.<\/p>\n

According to a Sept. 19 statement from the Department of Justice, 27-year-old Rashawn Russell pleaded guilty to participating in a scheme where he operated a fraudulent crypto investment fund dubbed the \u201cR3 Crypto Fund.\u201d<\/p>\n

Between Nov. 2020 and Aug. 2022, Russell defrauded 29 investors out of $1.5 million by leveraging his reputation as an investment banker and licensed financial broker to promise that he would be able to generate guaranteed, outsized returns on a series of crypto investments.<\/p>\n

\n

CRYPTO CRIMES CONTINUED: Former Deutsche Bank investment banker Rashawn Russell, who had denied defrauding investors in a #cryptocurrency<\/a> fraud, today pled guilty in # EDNY. He was indicted in April & accused of duping investors by promising \u201cguaranteed returns.\u201d pic.twitter.com\/Da0gYrbqqV<\/a><\/p>\n

\u2014 Inner City Press (@innercitypress) September 19, 2023<\/a><\/p><\/blockquote>\n

On multiple occasions, Russell lied to investors about their investments and fabricated multiple documents that displayed false information concerning their returns, according to the DOJ. <\/p>\n

The prosecution found that Russell sent altered images of his bank balance to his investors. Another time, when an investor sought to cash in on one of their crypto investments, Russell never sent the money and instead sent his victim a fabricated money transfer confirmation.<\/p>\n

According to prosecutors, most of the $1.5 million obtained from his victims was never used to invest in crypto assets. Instead, the funds were misappropriated by Russell and were used \u201cfor his personal benefit, to gamble, and to repay earlier investors,\u201d in the scheme. <\/p>\n

Related: <\/em><\/strong>Lawyer who laundered $400M from OneCoin scam denied new trial: Report<\/em><\/strong><\/p>\n

In addition to his investment scheme, Russell also pleaded guilty for his role in a separate identity-theft scheme where he fraudulently obtained credit cards and other devices using false information. <\/p>\n

The DOJ said Russell obtained these identity documents with the intention of using them to undertake illegal and unauthorized transactions.<\/p>\n

Upon sentences, he faces up to 30 years in prison for his crimes \u2014 with United States Magistrate Judge Sanket J. Bulsara ruling that he will be required to pay more than $1.5 million in restitution.<\/p>\n

Magazine: <\/em><\/strong>How to protect your crypto in a volatile market \u2014 Bitcoin OGs and experts weigh in<\/em><\/strong><\/p>\n<\/div>\n