TLDR
- Connecticut man charged in 21-count crypto fraud indictment
- Nearly $1M in investor funds lost on Stake.com gambling site
- Charges include wire fraud and international money laundering
- Suspect released on $500,000 bond after pleading not guilty
A Connecticut man faces federal charges after authorities said he lost nearly $1 million of investor funds on an offshore gambling platform. Prosecutors allege he misled investors by posing as a skilled cryptocurrency trader.
The U.S. Justice Department announced a 21-count indictment against Elmin Redzepagic of Connecticut. The charges relate to alleged crypto fraud tied to the gambling site Stake.com.
Allegations of Crypto Investment Scheme
Federal prosecutors said Redzepagic presented himself as a cryptocurrency investor who generated high returns. He allegedly persuaded individuals to send him money for digital asset investments.
Authorities claim he directed much of the funds to Stake.com, an offshore gambling platform. Between May 2021 and March 2025, he reportedly lost nearly $1 million belonging to investors.
A Wolcott man has been indicted on 21 charges related to an alleged cryptocurrency fraud scheme which lost nearly $1 million between multiple victims.https://t.co/RMKc9VjTdp pic.twitter.com/vau6Lbmy9Y
— WTNH News 8 (@WTNH) February 13, 2026
According to the indictment, Redzepagic told investors their funds were earning profits. Prosecutors said he continued to request additional investments while assuring clients of positive returns.
Court documents state he also claimed that extra “gas fees” were required to withdraw profits. Investigators allege these profits did not exist.
Federal Charges and Potential Penalties
Redzepagic was charged with three counts of making false statements to IRS Criminal Investigation agents. Each count carries a maximum sentence of five years in prison.
He also faces seven counts of wire fraud. In addition, he faces 11 counts of international money laundering. Each of those charges carries a maximum penalty of 20 years imprisonment.
The Justice Department stated that the indictment outlines a pattern of deceptive conduct. Prosecutors allege he abused investor trust and misrepresented the status of their funds.
Authorities have not released further financial details. The case remains under federal investigation.
Claims of a Wider Operation
The Justice Department release said Redzepagic claimed he worked with others. He reportedly referred to a person known as “The Chef” as part of his team.
“The Chef” was described as the supposed ringleader of the operation. It remains unclear whether this person exists or faces separate charges.
Investigators have not confirmed whether other individuals were involved. No additional arrests were announced at the time of the release.
The indictment does not specify the total number of alleged victims. However, prosecutors said the funds came from multiple investors.
Court Appearance and Release on Bond
Redzepagic appeared in court on Thursday and pleaded not guilty. The court released him on a $500,000 bond pending further proceedings.
The terms of his release were not fully detailed in the announcement. Future court dates are expected as the case moves forward.
The Justice Department stated that an indictment contains allegations. It noted that the defendant is presumed innocent unless proven guilty in court.
Federal prosecutors will present their case as the legal process continues. The outcome will depend on evidence reviewed during trial proceedings
