Wolcott man indicted in alleged crypto fraud tied to $950K of Stake.com gambling losses

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Wolcott indictment alleges $950K crypto scheme on Stake.com. Bitcoin next to US dollars, with US flag in the background

A 24-year-old man with ties to Wolcott, Connecticut, is dealing with federal prices after prosecutors say he ran a crypto investment scam and funneled practically $1 million of victims’ Bitcoin into on-line bets on the offshore playing website Stake.com.

A grand jury in New Haven returned the 21-count indictment on January 20, and authorities unsealed it this week. Federal prosecutors allege that Elmin Redzepagic promoted himself as a talented digital asset dealer and persuaded folks to ship him Bitcoin with guarantees of robust, regular returns.

Wolcott Man Indicted for Cryptocurrency Fraud Scheme @IRS_CI https://t.co/F5Uc8bLkDY

— U.S. Lawyer CT (@USAO_CT) February 12, 2026

Investigators say the gross sales pitch centered on simple earnings. Victims had been informed their cryptocurrency had grown in worth and was able to be withdrawn. However once they tried to money out, Redzepagic allegedly mentioned they first needed to pay “fuel charges” or different prices. In some instances, he claimed he labored with a crypto buying and selling group led by somebody recognized solely as “The Chef,” who supposedly determined when payouts could be launched.

How the alleged Wolcott crypto scheme involving Stake.com unfolded

Courtroom data paint a unique image of the place the cash went. Quite than inserting buyers’ Bitcoin into professional trades, prosecutors say Redzepagic transferred the funds to accounts on Stake.com, an offshore on-line playing platform. Authorities allege that he used the cash there to put bets.

By the point the exercise ended, investigators estimated the playing resulted in a web lack of about $950,000 throughout a number of victims.

The indictment prices Redzepagic with seven counts of wire fraud and 11 counts of worldwide cash laundering. He additionally faces three counts of constructing false statements to brokers with the Inside Income Service’s Legal Investigation Division.

If convicted, every wire fraud and cash laundering rely carries a possible sentence of as much as 20 years in jail. The false assertion prices are every punishable by as much as 5 years.

Redzepagic, who lately lived in Florida, appeared Thursday in federal courtroom in Hartford. He pleaded not responsible to all counts. After the listening to, he was launched on a $500,000 bond because the case proceeds. Justice of the Peace Choose Thomas O. Farris presided.

In keeping with a publicly accessible roster biography from Southern Connecticut State College, Redzepagic beforehand performed males’s basketball for the college and has ties to Wolcott.

Federal officers identified that an indictment will not be proof of guilt. Below U.S. regulation, a defendant is presumed harmless until prosecutors show guilt past an inexpensive doubt.

Authorities say the alleged fraud spanned from about Might 2021 by way of March 2025. Throughout that stretch, victims had been directed to ship Bitcoin to digital pockets addresses that investigators say Redzepagic managed.

The IRS Legal Investigation Division is main the investigation, and Assistant U.S. Lawyer Susan Wines is prosecuting the case.

Featured picture: Canva

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