Wolcott Man Indicted in $950K Crypto Scam Tied to Offshore Gambling Spree

A 24-year-old Connecticut man is facing a mountain of federal charges after prosecutors allege he ran a slick cryptocurrency investment scam that ended with nearly a million dollars of investors’ Bitcoin vanishing into the digital roulette tables of Stake.com.

Elmin Redzepagic, who has ties to Wolcott, Connecticut, and more recently lived in Florida, was indicted by a grand jury in New Haven on January 20. The 21-count indictment, unsealed this week, paints a picture of an alleged fraudster who promised big returns on crypto trades but instead allegedly funneled victims’ funds into high-stakes online gambling.

The Pitch: Big Promises, Bigger Lies

According to federal prosecutors, Redzepagic pitched himself as a savvy digital asset trader with insider access to lucrative crypto opportunities. Victims were told their investments were growing steadily, and they could withdraw profits anytime. But when they tried to cash out, Redzepagic allegedly hit them with a new demand: pay “gas fees” or other mysterious charges first.

In some cases, he claimed to be part of an elite crypto trading group run by someone known only as “The Chef,” who supposedly controlled when payouts could be released. It was a classic bait-and-switch—one that prosecutors say left victims empty-handed while Redzepagic allegedly lived large on their losses.

Where the Money Really Went: Stake.com

Court records reveal a far less glamorous reality. Instead of placing Bitcoin into legitimate trades, investigators say Redzepagic transferred the funds to accounts on Stake.com, a popular offshore online gambling platform. There, prosecutors allege, he placed bets—lots of them.

By the time the alleged scheme unraveled, authorities estimated that the gambling had resulted in a net loss of approximately $950,000 across multiple victims. That’s nearly a million dollars of hard-earned crypto, gone in a blur of digital dice rolls and slot spins.

The Charges: A Legal Avalanche

Redzepagic now faces a staggering array of charges:

• Seven counts of wire fraud – Each carrying up to 20 years in prison
• Eleven counts of international money laundering – Also punishable by up to 20 years each
• Three counts of making false statements to IRS agents – Up to 5 years each

If convicted on all counts, Redzepagic could be looking at decades behind bars. The case is being prosecuted by Assistant U.S. Attorney Susan Wines, with the IRS Criminal Investigation Division leading the probe.

Court Appearance and Next Steps

Redzepagic appeared in federal court in Hartford this week, where he pleaded not guilty to all charges. After the hearing, he was released on a $500,000 bond. Magistrate Judge Thomas O. Farris presided over the proceedings.

Interestingly, a publicly available roster from Southern Connecticut State University lists Redzepagic as a former player on the men’s basketball team, adding an unexpected twist to the story of the accused crypto fraudster.

The Timeline: A Multi-Year Scheme

According to prosecutors, the alleged fraud spanned from May 2021 to March 2025—a nearly four-year run during which Redzepagic allegedly directed victims to send Bitcoin to digital wallet addresses he controlled. The scheme only came to light after victims grew suspicious of the repeated delays and excuses.

Federal officials were quick to remind the public that an indictment is not proof of guilt. Under U.S. law, Redzepagic is presumed innocent until proven guilty beyond a reasonable doubt.

The Bigger Picture: Crypto Scams on the Rise

This case is just the latest in a string of high-profile cryptocurrency fraud investigations. As digital assets become more mainstream, scammers are finding new ways to exploit investors’ trust—and their wallets.

The use of offshore gambling sites like Stake.com adds another layer of complexity, making it harder for authorities to trace and recover stolen funds. It’s a reminder that in the wild west of crypto, due diligence is more important than ever.

What Victims Can Do

If you believe you’ve been a victim of a cryptocurrency scam, authorities recommend:

• Reporting the incident to the FBI’s Internet Crime Complaint Center (IC3)
• Contacting your local law enforcement
• Reaching out to the IRS Criminal Investigation Division if the fraud involves tax-related crimes

Final Thoughts

The alleged actions of Elmin Redzepagic serve as a cautionary tale for anyone considering crypto investments. Promises of guaranteed returns and insider access should always be met with skepticism—especially when they come with requests for upfront fees or delays in withdrawals.

As the case unfolds, one thing is clear: the intersection of cryptocurrency, fraud, and offshore gambling is a dangerous mix—one that can leave victims with nothing but regret and a lighter digital wallet.

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