Former Deutsche Bank Employee Accused of Crypto Fraud Will Pay $1.5M

Rashawn Russell, a former employee of Deutsche Bank, has admitted to being involved in a scam to defraud 29 clients of the R3 crypto fund for a total of $1.5 million.

The Brooklyn federal court also revealed that Russell stole personal information and access to electronic devices with the intention of using them for unauthorized transactions.

US Attorney Breon Peace stated, “Russell took advantage of investors’ interest in the cryptocurrency market to carry out his scheme and defraud clients who trusted him.

The quick resolution of this case highlights our commitment to holding digital asset market actors accountable.”

Court documents revealed that from November 2020 to August 2022, the former Deutsche Bank broker deceived investors in the R3 fund by promising them returns from trading cryptocurrencies.

However, Russell used most of the funds for gambling, paying off debts to previous investors, and covering personal expenses.

The defendant could face a maximum sentence of 30 years in prison. As part of his plea deal, he has agreed to pay restitution worth more than $1.5 million.