USA: Former banker sentenced to 41 months for crypto scam

A former Deutsche Bank executive has been sentenced to 41 months in prison and ordered to pay $1.5 million in restitution. Rashawn Russell was convicted of wire fraud for urging people to invest in a crypto scam between 2020 and 2022.

From bank to crypto scam: Rashawn Russell’s journey

U.S. authorities are taking a hard line with illicit crypto users. A few days after the conviction of a crypto swindler targeting mainly Muslims, it’s a former banker who has fallen foul of the U.S. justice system. That’s right, Rashawn Russell, a former Deutsche Bank executive was sentenced to 41 months in prison. The former investment banker will also have to pay $1.5 million in compensation.

According to U.S. Department of Justice press releaseRashawn Russell has been convicted of wire fraud, among other charges. The Brooklyn federal court claims that the former banker abused the growing interest in crypto investments to mislead investors. Between 2020 and 2022, Russell convinced several people to invest their money in a crypto project, promising significant returns. He raised $1.5 million from several investors.

However, the investors never reviewed their investments or the promised gains. According to the prosecution, a significant portion of the funds was used by Russell for his own personal needs or to reimburse other investors. These serious accusations were acknowledged by the accused himself. September 2023, Rashawn Russell pleaded guilty.

Despite its relative maturity, the crypto ecosystem is still not immune to malicious actors. To this end, it’s important to be vigilant and cautious so as not to fall victim to them. In crypto, as in other economic sectors, there’s no such thing as a quick and easy buck.