A former funding banker and registered dealer has been sentenced for masterminding a $1.5 million crypto fraud scheme.
In a brand new press launch, the US Division of Justice (DOJ) says that Rashawn Russell, who used to work for the Monetary Trade Regulatory Authority (FINRA), has been sentenced to 3 years and 5 months behind bars.
The DOJ says that between November 2020 and August 2022, Russell ran a scheme the place he defrauded crypto traders utilizing false guarantees of huge returns. Russell would then misappropriate their funds for private use.
“Russell misappropriated a lot of the traders’ property and used them to fund private bills, to gamble, and to repay different traders. Russell additionally repeatedly didn’t repay traders’ principal investments and failed to offer traders with promised charges of return.
After sure traders requested to be repaid their investments, Russell additionally falsely represented that he had wired the cash to them.”
In line with the DOJ, In a separate rip-off between September 2021 and June 2023, Russell illegally obtained 97 credit score and debit numbers and 43 identification playing cards from health club lockers in New York and New Jersey and used them for unauthorized transactions.
Along with his time behind bars, Russell has been ordered to pay $1.5 million in restitution towards the victims of his digital asset fraud scheme, in accordance with the press launch.
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