Deutsche Bank banker arrested on charges of operating a cryptocurrency pyramid

Rashawn Russell (27), a banker at Deutsche Bank, was arrested Monday (10) on charges of operating a cryptocurrency pyramid scheme. The information was published on Tuesday (11) by the US law firm.

According to the allegations, Russell allegedly collected money from several victims, while in some cases promising a guaranteed return. However, the banker did not invest the capital in cryptocurrencies, but spent it on personal expenses, including gambling.

Furthermore, the American lawyer also claims that Russell even forged documents to reinforce his lies.

“When another investor tried to recoup his investment, Russell never sent the money and instead sent the investor a falsified confirmation of the transfer, ostensibly to demonstrate the return of the investor’s money.”

If convicted, the banker could face a prison sentence of up to 20 years.

US arrests banker accused of running cryptocurrency scam

According to his LinkedIn profile, Rashawn Russell entered the banking industry in 2013 while working at Moody’s Corporation. Later, in 2014, he spent two months at JP Morgan before embarking on a 7-year career at Deutsche Bank where he still acts as an associate.

In addition, the banker was also a registered broker with the Financial Industry Regulatory Authority (FINRA).

Despite his professional success, Russell was arrested by US authorities on Monday (10). The allegations indicate that the banker was running a pyramid scheme involving cryptocurrencies.

“As claimed, Russell turned demand for cryptocurrency investment into a scheme to scam several investors into financing his lifestyle”stated Breon Peace, US attorney.

The prosecution explains the scam, claiming that much of the money raised was diverted by Russell to fund his lifestyle, gambling and, finally, pay back other investors. In other words, a classic case of financial pyramid.

As part of the plan, Russell lied to investors about the status of his investments and falsified several documents he sent to investors.reported the US attorney. “As alleged, Russell sent an altered image of a bank balance on a banking website to an investor claiming to demonstrate Russell’s substantial liquidity.”

Finally, the banker may have taken advantage of his professional status to more easily mislead his victims. However, it is important to note that similar scams are very common in the financial market and self-custody is still the best way to invest in cryptocurrencies.

Source: Live Coins

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