Former JPMorgan employee charged in cryptocurrency fraud case

On 10 April, New York law enforcement arrested the former broker for JPMorgan and Deutsche Bank Rashon Russell on suspicion of fraud involving digital assets.

“As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” stated United States Attorney Peace. https://t.co/UAASdEB0WO

— US Attorney EDNY (@EDNYnews) April 11, 2023

According to investigators, Russell persuaded several investors that their money would yield higher profits through altcoins. However, after transferring the funds, the defendant spent them on gambling and paying off his debts.

Authorities allege that the broker forged documents showing investors’ profits. He also claimed to have developed a successful altcoin trading strategy, through which he earned more than 100% returns in three months.

“Russell turned the demand for cryptocurrency investments into a fraudulent scheme to defraud investors and fund his lifestyle. […] We will continue to aggressively pursue criminals engaging in such schemes on the digital asset markets,” said U.S. Attorney Breon Peace.

If found guilty, Russell could face up to 20 years in prison.

Earlier in March, US authorities arrested a Chinese citizen, Miles Gu, on charges of organizing cryptocurrency-related fraud amounting to more than $1 billion.

In April, South Korean authorities detained employees of the local crypto exchange Coinone. They are suspected of taking bribes for listing digital assets.