Elmin Redzepagic, 24, has been charged with 21 counts after allegedly defrauding investors of nearly $1 million and using the money for gambling instead of investing as promised.
Prosecutors said that between May 2021 and March 2025, Redzepagic tricked numerous victims into transferring money, primarily in Bitcoin, to wallet addresses he controlled. According to the allegations , Redzepagic presented himself as a trustworthy cryptocurrency investor capable of generating large returns, sustaining the scam by reassuring investors that their money was rapidly increasing due to successful investments, leading victims to transfer more funds.
A federal grand jury in New Haven issued an indictment on January 20, 2026, charging Redzepagic with seven counts of fraud through communications, 11 counts of international money laundering, and three counts of making false statements to Internal Revenue Service investigators. Each count of fraud and money laundering carries a maximum sentence of 20 years in prison, while each count of making false statements carries a maximum sentence of five years.
Fraud and loss model
Instead of investing the money in real cryptocurrency transactions, authorities allege Redzepagic kept it for himself and transferred a large portion to the offshore gambling website Stake. Investigators say he used Stake to receive and hold investor funds, and also created cryptocurrency wallet addresses to allow victims to easily send Bitcoin directly. Sometimes Redzepagic would return small payments to victims, referred to as “appeasement payments,” to make them believe the money was actually generating profits.
Prosecutors allege Redzepagic used the money to gamble on Stake and lost a significant portion of it, resulting in net losses of approximately $950,000 to $1 million for the victims. Many lost both their expected profits and their entire initial Capital . Prosecutors also stated that Redzepagic made false statements during questioning by agents of the Internal Revenue Service's Criminal Investigations Division in September 2023, leading to additional charges of intentionally misleading the investigation.
Redzepagic pleaded not guilty in federal court in Hartford. The judge set bail at $500,000, allowing the defendant to remain free while the case continues. Prosecutors emphasized that Redzepagic is presumed innocent until proven guilty beyond reasonable doubt, and that the indictment is merely an accusation. The Internal Revenue Service's Criminal Investigations Division is leading the investigation, and Assistant Attorney Susan Wines will directly oversee the prosecution.
