A former Deutsche Bank executive has admitted guilt in the ongoing investigation into a fake cryptocurrency fund.
New developments are emerging regarding the R3 crypto fund, which was revealed to be fake in the first months of 2023. According to the statement made recently by the US Department of Justice, former Deutsche Bank executive Rashawn Russell admitted that he was guilty. The financier, who worked in high positions at the age of 27, now faces up to 30 years in prison.
CRYPTO CRIMES CONTINUED: Former Deutsche Bank investment banker Rashawn Russell, who had denied defrauding investors in a #cryptocurrency fraud, today pled guilty in # EDNY. He was indicted in April & accused of duping investors by promising “guaranteed returns.” pic.twitter.com/Da0gYrbqqV
— Inner City Press (@innercitypress) September 19, 2023
US prosecutors stated that Russel encouraged investors for a fake fund called “R3 Crypto Fund” between the end of 2020 and the summer of 2022. According to the indictment, the former banker collected $1.5 million from 29 people by lying about guaranteed income during the said period.
The fraudster, who collected the money, deceived investors for a long time by making simple manipulations on their balance accounts. The truth emerged when people wanted to transfer the income they earned to their own accounts.
It is noteworthy that the method Russel used to defraud is similar to the Bernie Madoff case. Madoff created the largest Ponzi scheme in history by creating fake end-of-day reports. Fake investment expert and stockbroker stole $64 billion from investors.
Prosecutors also found that the former Deutsche Bank executive never invested the money he received and arranged for past payments. It is not yet clear which cryptocurrencies Rashawn Russell is raising money for.
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