A 24-year-old man with ties to Wolcott, Connecticut, is facing federal charges after prosecutors say he ran a crypto investment scam and funneled nearly $1 million of victims’ Bitcoin into online bets on the offshore gambling site Stake.com.
A grand jury in New Haven returned the 21-count indictment on January 20, and authorities unsealed it this week. Federal prosecutors allege that Elmin Redzepagic promoted himself as a skilled digital asset trader and persuaded people to send him Bitcoin with promises of strong, steady returns.
Wolcott Man Indicted for Cryptocurrency Fraud Scheme @IRS_CI https://t.co/F5Uc8bLkDY
— U.S. Attorney CT (@USAO_CT) February 12, 2026
Investigators say the sales pitch centered on easy profits. Victims were told their cryptocurrency had grown in value and was ready to be withdrawn. But when they tried to cash out, Redzepagic allegedly said they first had to pay “gas fees” or other charges. In some cases, he claimed he worked with a crypto trading group led by someone known only as “The Chef,” who supposedly decided when payouts would be released.
How the alleged Wolcott crypto scheme involving Stake.com unfolded
Court records paint a different picture of where the money went. Rather than placing investors’ Bitcoin into legitimate trades, prosecutors say Redzepagic transferred the funds to accounts on Stake.com, an offshore online gambling platform. Authorities allege that he used the money there to place bets.
By the time the activity ended, investigators estimated the gambling resulted in a net loss of about $950,000 across multiple victims.
The indictment charges Redzepagic with seven counts of wire fraud and 11 counts of international money laundering. He also faces three counts of making false statements to agents with the Internal Revenue Service’s Criminal Investigation Division.
If convicted, each wire fraud and money laundering count carries a potential sentence of up to 20 years in prison. The false statement charges are each punishable by up to five years.
Redzepagic, who recently lived in Florida, appeared Thursday in federal court in Hartford. He pleaded not guilty to all counts. After the hearing, he was released on a $500,000 bond as the case proceeds. Magistrate Judge Thomas O. Farris presided.
According to a publicly available roster biography from Southern Connecticut State University, Redzepagic previously played men’s basketball for the school and has ties to Wolcott.
Federal officials pointed out that an indictment is not evidence of guilt. Under U.S. law, a defendant is presumed innocent unless prosecutors prove guilt beyond a reasonable doubt.
Authorities say the alleged fraud spanned from about May 2021 through March 2025. During that stretch, victims were directed to send Bitcoin to digital wallet addresses that investigators say Redzepagic controlled.
The IRS Criminal Investigation Division is leading the investigation, and Assistant U.S. Attorney Susan Wines is prosecuting the case.
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