A $1.5 million cryptocurrency fraud scheme orchestrated by a former investment banker and registered broker has resulted in a conviction and prison sentence. The US Department of Justice (DOJ) announced that Rashawn Russell, previously employed by the Financial Industry Regulatory Authority (FINRA), has been sentenced to three years and five months behind bars.

According to the DOJ, Russell operated the fraudulent scheme between November 2020 and August 2022. He deceived crypto investors with false promises of substantial returns and then diverted their funds for personal use. Russell misused a significant portion of the investors’ assets to finance his own expenses, engage in gambling activities, and repay other investors. Moreover, he failed to reimburse investors for their principal investments and did not deliver the promised rates of return. When certain investors demanded repayment, Russell deceitfully claimed to have wired the funds to them.

In a separate illicit endeavor spanning from September 2021 to June 2023, Russell illicitly obtained 97 credit and debit card numbers, as well as 43 identification cards, from gym lockers in New York and New Jersey. He subsequently exploited this information to conduct unauthorized transactions.

In addition to his prison sentence, Russell has been ordered to compensate the victims of his digital asset fraud scheme with $1.5 million, as stated in the press release.

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