Former Deutsche Bank investment banker Rashawn Russell is planning to plead guilty to charges of cryptocurrency fraud. Initially, Russell had denied any involvement in deceptive crypto transactions, but recent court filings suggest a change in his defense strategy. Russell’s legal proceedings have experienced delays, allowing his attorneys to explore the possibility of a plea deal. With the case now forwarded to a magistrate judge for a “change of plea” hearing, it indicates Russell’s intent to admit guilt in connection to the fraud charges. This unexpected twist deviates from the initial expectation of a lengthy legal battle.
This development aligns with Deutsche Bank’s decision to offer custody solutions to institutional clients for their crypto and tokenized assets. By expanding their capabilities to hold cryptocurrencies and tokenized representations of conventional financial assets, Deutsche Bank demonstrates the growing convergence between traditional finance and the world of digital assets.
The allegations against Rashawn Russell stem from his arrest in April in Brooklyn, New York. Facing up to a 20-year prison sentence, he was accused of defrauding investors by promising significant returns on their crypto investments. Prosecutors alleged that Russell falsified documents to create an appearance of liquidity, while diverting a significant portion of the investors’ funds for personal use and repayment to other investors. Additionally, Russell faced a separate lawsuit from the Commodity Futures Trading Commission (CFTC) for misleading retail investors involved in the R3 Crypto Fund. The CFTC claimed that Russell unlawfully redirected approximately $1 million from customers between November 2020 and July 2022.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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