Connecticut native docked in $1 million crypto scam - Coinfea

United States authorities have charged a man from Wolcott, Connecticut, in court over a $1 million crypto fraud scheme. The suspect is facing a 21‑count federal indictment after authorities say he defrauded investors of nearly $1 million in a cryptocurrency scheme.

ContentsConnecticut man charged in crypto scamSuspect lost the funds on a gambling websiteIn their reports, authorities added that most of the funds were allegedly lost gambling on an offshore platform instead of being invested as promised. Prosecutors claim that a 24-year-old Elmin Redzepagic stole from multiple victims in a crypto scam. Between May 2021 and March 2025, victims were coerced into sending funds in several digital assets to wallet addresses controlled by Redzepagic.

Connecticut man charged in crypto scam

Authorities say Redzepagic presented himself as a trusted crypto investor who could generate big profits, and people believed him enough to send him their money. Prosecutors say Redzepagic kept the con going by reassuring investors that their money was growing quickly because of his investments. However, instead of investing, authorities claim he kept it for himself and even sent a large portion of it to an offshore gambling website.

Federal officials say the scheme went on for years, and many people lost all their money. In the official announcement from the US Attorney’s Office for the District of Connecticut, prosecutors said a federal grand jury returned an indictment charging Redzepagic with 21 counts of alleged fraud. They said the victims were misled for a long period before authorities brought the case to court because the scheme began around May 2021 and continued through March 2025.

Prosecutors allege that the suspect took the money people gave him for crypto investments and transferred it to an offshore gambling platform called Stake.com. Authorities say Elmin had no intention whatsoever of using the funds as he had promised investors he would. Investigators also said Redzepagic used Stake.com to receive and hold investor money and create crypto wallet addresses.

Suspect lost the funds on a gambling website

Prosecutors say Redzepagic also made several false statements during an interview with IRS Criminal Investigation agents in September 2023. So they charged him with additional offenses on his rap sheet for attempting to mislead the investigators. Following the investigations, authorities charged Redzepag with a crime. This led to a federal grand jury in New Haven returning an indictment on January 20, 2026, and charging Redzepag on 21 counts.

He was charged with seven counts of wire fraud, eleven counts of international money laundering, and three counts of making false statements to IRS investigators. Prosecutors say each count of wire fraud and money laundering can carry a maximum sentence of 20 years, while each count of false statement can carry a maximum sentence of 5 years.

Redzepagic pleaded not guilty in federal court in Hartford, and the judge set a $500,000 bond, allowing him to remain free as the case moves forward. Prosecutors also said Redzepagic is presumed innocent unless proven guilty beyond a reasonable doubt, so an indictment is only an accusation. The IRS Criminal Investigation Division is leading the investigations, and Assistant US Attorney Susan Wines will be at the forefront of the prosecution.