This Former JPMorgan Official Was Arrested On Alleged Crypto Fraud

Former high-ranking officials at the investment bank are accused of crypto fraud. (Photo; Doc. Cryptoworld)

JAKARTA - The United States (US) Department of Justice announced on Tuesday, April 11, 2023 that a former investment banker who has worked at JPMorgan and Deutsche Bank will face up to 20 years in prison for alleged crypto fraud.

Russell's 27-year-old Rashawn Russell, who is a registered broker, has been arrested by the Department of Justice (DOJ) and will soon be brought to justice in New York. According to the allegations, Russell has deceived a number of investors by making them believe that their money will generate huge profits through altcoins, digital assets, and cryptocurrencies other than Bitcoin.

The US Department of Justice claims that when customers hand over their money, Russell usually uses it for his personal gain, such as gambling and paying to other investors.

In addition, Russell has repeatedly falsified documents by showing investors his ability to generate profits. He changed the image of the bank balance displayed on the bank's website showing substantial liquidity.

When an investor tries to take back his investment, Russell never sends real money. Instead, he sent confirmation of a fake wire transfer claiming to return investors' money.

"As alleged, Russell turned investment demand in crypto into a scheme to deceive many investors into financing his lifestyle. Our office will continue to pursue fraudsters who carry out this scheme against investors in the digital asset market," said United States Attorney Peace.

"Sometimes, he also claims to have developed a successful strategy to trade with the cryptocurrency 'altcoin' and generate profits for investors more than 100 percent over the previous three months," the United States Prosecutor's Office said in a statement. New York Eastern District, quoted by CoinSpeaker.

Increasing Crypto Fraud

During the crypto winter of 2022, there was a major increase in crypto fraud cases with many similar incidents recorded worldwide. Over the past year, most crypto scams occurred in the decentralized financial market (DeFi) which cost more than $4 billion to investors.

The United States Department of Justice (DoJ) and other regulators have remained vigilant since then on developments in the crypto space.

"The claim in the indictment is only an accusation and Russell is considered innocent until found guilty through reasonable doubts. If found guilty, he can be punished with a maximum sentence of 20 years in prison," added DoJ.