Ex-Deutsche Bank investment banker charged in U.S. with crypto fraud

By Luc Cohen NEW YORK, April 11 (Reuters) - A former Deutsche Bank AG investment banker has been charged in an indictment unsealed on Tuesday with misappropriating funds from investors who he wooed with promises of big returns from cryptocurrency trading. Rashawn Russell, 27, of Brooklyn, solicited investments from friends and colleagues but used the funds for gambling and other personal expenses, federal prosecutors said. According to the indictment, Russell told prospective investors that he was a licensed broker who worked in investment banking and could help them earn large and sometimes guaranteed returns from R3, a cryptocurrency fund he claimed to run. Prosecutors said Russell transferred some funds into a trading account but siphoned the rest, and sent fake documentation to investors about how their money was doing. Russell, arrested on Monday in Brooklyn after being charged in a sealed indictment last Thursday, faces one count of wire fraud for a scheme that prosecutors said ran from November 2020 through August 2022. A lawyer for Russell did not immediately respond to a request for comment.

According to the indictment, Russell was an investment
banker from July 2018 through November 2021 at a financial institution that was not identified in the document. His LinkedIn profile states that he became a Deutsche Bank investment banking analyst in July 2018 and was promoted to associate in July 2020.

U.S. prosecutors and regulators have been working to crack down on fraud involving digital assets. "Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors," Breon Peace, the U.S. attorney in Brooklyn, said in a statement. Deutsche Bank said in a statement that while it would not comment on an ongoing legal proceeding, it "regularly supports law enforcement and regulatory oversight efforts, including appropriately responding to and cooperating with authorized investigations and proceedings."
(Reporting by Luc Cohen in New York; Editing by Will Dunham)

Messaging: Twitter: @cohenluc))

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

Ex-Deutsche Bank investment banker charged in U.S. with crypto fraud

By Reuters

Reuters

Reuters

Gold has a path to $4,000 as U.S. credibility crumbles - WisdomTree’s Nitesh Shah

Why gold revaluation charts put prices at $25,000-$55,000 if history rhymes, silver poised for breakout: Crescat Capital Strategist

Whether 145% or 10%, tariff uncertainty is enough to stop U.S. gold and silver imports, distort the metals market at all levels – Experts

Gold price plummets as U.S.-China trade relations thawing

Gold price down a bit amid better risk appetite