The US Department of Justice (DOJ) has indicted a New York investment banker with defrauding clients about his crypto deals.
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In a court document filed in the Eastern District of New York (EDNY), the DOJ said that former FINRA-registered broker Rashawn Russell defrauded investors by inducing them to invest in his R3 Crypto Fund, while the money were misused for gambling.
The government says Russell promised a 25% guaranteed return on investments, and, sometimes, even promised to return principal investments regardless of the actual performance of the investment.
Although the total amount of stolen money remains unclear, the document reads some investors transferred between $90,000 and $295,000 to the R3 fund. If found guilty, Russell could see as much as 20 years in prison.
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