Federal indictment details alleged crypto investment scam
A 24-year-old Connecticut man is now facing 21 federal charges after authorities say he defrauded investors of nearly $1 million in a cryptocurrency scheme. According to prosecutors, Elmin Redzepagic from Wolcott presented himself as a trusted crypto investor who could generate substantial profits for people.
Between May 2021 and March 2025, victims were persuaded to send funds—primarily in Bitcoin—to wallet addresses that Redzepagic controlled. He apparently kept the scheme going by reassuring investors that their money was growing quickly through successful crypto trades. This led people to send even more money, thinking they were participating in legitimate investments.
Funds allegedly gambled away instead of invested
But here’s where things take a turn. Instead of actually investing the money in cryptocurrency markets as promised, authorities claim Redzepagic transferred the funds to an offshore gambling platform called Stake.com. Prosecutors allege he had no intention of using the money for crypto investments at all.
Investigators say Redzepagic used Stake.com not just for gambling, but also to create crypto wallet addresses that made it easy for victims to send him Bitcoin directly. To maintain the illusion of profitability, he sometimes sent small “lulling payments” back to investors. These small returns made people believe their investments were actually earning profits.
The financial impact and investigation timeline
The scheme allegedly resulted in net losses between $950,000 and $1 million for the victims. Many people lost both their expected profits and their entire original investments. The case came to light through an investigation led by the IRS Criminal Investigation Division.
Prosecutors also claim that Redzepagic made several false statements during an interview with IRS agents in September 2023. This led to additional charges for attempting to mislead investigators.
Legal charges and potential penalties
A federal grand jury in New Haven returned the indictment on January 20, 2026. The 21 counts include seven counts of wire fraud, eleven counts of international money laundering, and three counts of making false statements to IRS investigators.
Each wire fraud and money laundering count carries a maximum sentence of 20 years in prison, while each false statement count carries up to 5 years. That’s potentially a very long time behind bars if convicted on all counts.
Redzepagic has pleaded not guilty in federal court in Hartford. The judge set a $500,000 bond, allowing him to remain free as the case proceeds through the legal system. Prosecutors emphasized that an indictment is only an accusation, and Redzepagic is presumed innocent unless proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Susan Wines will lead the prosecution. The case highlights what seems to be a growing pattern of crypto-related fraud cases where people promise unrealistic returns. It’s a reminder that if something sounds too good to be true in the crypto space, it probably is.
I think what’s particularly concerning here is the duration—the scheme allegedly ran for nearly four years. That’s a long time for people to be losing money without realizing what was happening. The use of an offshore gambling platform adds another layer of complexity to tracking the funds.
These cases always make me wonder about the psychology behind them. How does someone maintain a deception for years while watching people lose their savings? And from the investors’ perspective, when do small returns become suspicious rather than reassuring?
The crypto space still has these trust issues, despite being around for over a decade now. Maybe that’s just human nature—people want to believe in quick wealth, and others are willing to exploit that desire.
