Today, Rashawn Russell pleaded guilty in a federal court in Brooklyn to participating in a fraudulent scheme involving the R3 Crypto Fund, a cryptocurrency investment fund he operated. Additionally, Russell admitted guilt in a separate identity theft scheme where he fraudulently acquired credit cards and other access devices using third-party identities. United States Magistrate Judge Sanket J. Bulsara presided over the plea. Russell could face up to 30 years in prison upon sentencing and is obligated to pay restitution exceeding $1.5 million as part of the plea agreement.
This guilty plea was announced by Breon Peace, United States Attorney for the Eastern District of New York; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Eric Shen, Inspector-in-Charge, U.S. Postal Inspection Service, Criminal Investigations Group (USPIS).
Russell, a former investment banker and registered broker with the Financial Industry Regulatory Authority, carried out the fraudulent scheme between November 2020 and August 2022. He lured investors into his R3 Crypto Fund by making false promises, including the guarantee of substantial cryptocurrency investment returns. In reality, Russell misappropriated a significant portion of the investors’ assets for his personal use, gambling, and repaying earlier investors. At least 29 investors suffered losses totaling at least $1.5 million due to Russell’s actions.
In a separate fraud scheme occurring between September 2021 and June 2023, Russell fraudulently acquired more than fifteen credit cards and other access devices using the identities of third parties. His intention was to use these devices for unauthorized transactions.
The case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Department of Justice, Criminal Division, Fraud Section. The prosecution team includes Assistant United States Attorney Drew Rolle, Trial Attorney Kyle Crawford, and Assistant Chief Scott Armstrong.
By FCCT Editorial Team
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