Wolcott man pleads guilty in $1.1 million cryptocurrency fraud scheme
Federal prosecutors say Elmin Redzepagic, 25, told investors he was making them money in cryptocurrency but instead gambled their funds away on an offshore betting site.
A 25-year-old Wolcott man pleaded guilty Monday in federal court in Bridgeport to charges stemming from a cryptocurrency fraud scheme that prosecutors said cost more than 10 victims a combined $1,159,945.34.
Elmin Redzepagic pleaded guilty before U.S. District Judge Kari A. Dooley to two counts of wire fraud, one count of international money laundering and one count of lying to federal agents, according to the U.S. attorney's office for the District of Connecticut.
Between May 2021 and March 2025, Redzepagic presented himself to investors as a cryptocurrency trader who earned high returns, prosecutors said. Once victims handed over money, he told them they had made a substantial profit but had to pay additional "gas fees" to withdraw it.
Redzepagic claimed to be part of a team led by someone known as "The Chef," who supposedly decided who would be paid, how much and when, according to prosecutors.
Instead of investing the money, prosecutors said, Redzepagic moved it to Stake.com, an offshore gambling platform, which he used to hold the proceeds, generate addresses where victims could send him Bitcoin, and make large payments to victims meant to keep them from growing suspicious. He lost the victims' money gambling on the site, prosecutors said.
When IRS criminal investigators interviewed him in September 2023, he made several false statements, the U.S. attorney's office said.
Redzepagic, who was arrested Feb. 12, faces up to 20 years in prison on each fraud and money laundering count. He is free on a $500,000 bond, and sentencing is scheduled for Jan. 11, 2027.
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