According to the US Justice Department, a former Deutsche Bank (DBKGn.DE) investment banker pleaded guilty on Tuesday to misappropriating cash from investors he enticed with promises of high returns from cryptocurrency trading.
According to the Justice Department, Rashawn Russell faces up to 30 years in prison when sentenced. Russell will be compelled to pay more than $1.5 million in restitution as part of his plea agreement.
“Russell took advantage of investor interest in cryptocurrency markets to perpetrate a scheme to defraud clients who trusted him,” US Attorney Breon Peace stated.
Russell worked as an investment banker for a financial firm not named in his indictment from July 2018 until November 2021. According to his LinkedIn page, he started as a Deutsche Bank investment banking analyst in July 2018 and was promoted to associate in July 2020.
Russell told prospective investors that he was a qualified broker with experience in investment banking who could help them make big and sometimes guaranteed returns from R3, a cryptocurrency fund he claimed to manage.
Prosecutors claim Russell placed some monies into a trading account while siphoning the rest and sending false documentation to investors regarding the status of their money. According to federal authorities, he solicited investments from friends and colleagues but spent the proceeds on gambling and other personal needs.
Prosecutors and regulators in the United States have been striving to combat digital asset fraud.
When Russell was charged in April, Deutsche Bank stated that, while it would not comment on a pending legal matter, it “regularly supports law enforcement and regulatory oversight efforts, including appropriately responding to and cooperating with authorized investigations and proceedings.”
Deutsche did not reply quickly to a request for comment.
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