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A 25-year-old Connecticut man has pleaded guilty to federal fraud charges after telling crypto investors their money was growing, then gambling it away on offshore betting site Stake.com. Elmin Redzepagic of Wolcott admitted on October 19 to two counts of wire fraud, one of international money laundering and one of lying to IRS agents. The scheme cost more than 10 victims a net $1,159,945.34.
According to court documents and statements made in court, Redzepagic built his operation around claims that he could deliver high returns from cryptocurrency investments.
The scheme began with victims making an initial investment. Redzepagic would then tell them that their money had generated substantial profits, creating the impression that their investments were performing well.
When victims attempted to withdraw their supposed earnings, he allegedly demanded additional payments described as “gas fees.” These fees were presented as necessary costs that had to be settled before the investors could access their money.
Prosecutors said Redzepagic also claimed to work with a team that included an individual known as “The Chef,” who supposedly managed the operation and determined which investors would receive payments, as well as when and how those payments would be made.
The alleged arrangement gave victims an explanation for delays in receiving their money while reinforcing the impression that a functioning investment operation existed.
Rather than investing the funds as promised, Redzepagic transferred the money to Stake.com. Prosecutors said he used the platform to receive and hold proceeds from the scheme, generate cryptocurrency addresses through which victims sent Bitcoin, and make substantial payments to some investors to keep the operation going.
Such payments, described in the case as “lulling” payments, can help sustain an alleged fraud by convincing victims that the investment arrangement is legitimate or that withdrawals remain possible.
According to prosecutors, the money ultimately lost through gambling amounted to a net loss of $1,159,945.34 across more than 10 victims.
The crypto fraud case demonstrates how claims of cryptocurrency investment returns can be used to attract funds even when the money is not being invested as represented. It also highlights the role that cryptocurrency transfers can play in moving money into other financial services.
Redzepagic pleaded guilty to four federal counts: two counts of wire fraud, one count of international money laundering and one count of making a false statement to IRS Criminal Investigation agents.
Each wire fraud count carries a maximum prison sentence of 20 years. The international money laundering charge also carries a maximum of 20 years, while the false-statement charge carries a maximum of five years.
These are statutory maximum penalties, not a prediction of the sentence Redzepagic will receive. The final sentence will be determined by the court.
Prosecutors also said Redzepagic made several false statements when he was interviewed by IRS Criminal Investigation agents in September 2023.
The case was investigated by the IRS Criminal Investigation Division, with Assistant US Attorney Susan Wines handling the prosecution.
Redzepagic was arrested on February 12, 2026, and remains free on a $500,000 bond pending sentencing.
The crypto fraud case initially involved a substantially broader set of allegations. On January 20, 2026, a federal grand jury in New Haven returned a 21-count indictment charging him with seven counts of wire fraud, 11 counts of international money laundering and three counts of making false statements.
At the time of the indictment, prosecutors estimated the alleged net loss at approximately $950,000. Redzepagic pleaded not guilty when he appeared in federal court in Hartford on February 12.
The later guilty plea covers four counts. The plea announcement did not specify how the remaining counts in the original indictment would be handled.
The difference between the earlier loss estimate and the final figure reported following the plea reflects the amounts cited at different stages of the proceedings. The case materials identify the net loss associated with more than 10 victims as $1,159,945.34.
Stake.com features prominently in the case because prosecutors said Redzepagic used the platform to hold and gamble funds collected from victims.
The platform is not among the three licensed operators offering online sports betting in Connecticut, according to the report. Those operators are FanDuel, DraftKings and Fanatics.
The distinction highlights the regulatory differences between licensed gambling services and offshore platforms. However, the case concerns Redzepagic’s alleged misuse of investors’ funds, and the available account does not establish that Stake.com was charged with wrongdoing or knowingly participated in his scheme.
Authorities in other US states have also taken steps against unlicensed online gambling operators.
Michigan regulators recently sent cease-and-desist letters to 33 offshore operators, warning that users of those sites may lack access to deposit limits and other responsible gambling protections required of licensed online sportsbooks and casinos.
In Nevada, a Clark County grand jury indicted a Las Vegas man in September over allegations that he accepted sports wagers through a website based in Costa Rica. The man denied the allegations, according to the report.
These separate regulatory actions provide context for the scrutiny facing offshore gambling services, but they are not findings against Stake.com in the Connecticut case.
Redzepagic is due to appear for sentencing on January 11, 2027, before Judge Dooley. The court will determine the appropriate sentence after considering the applicable law and circumstances of the case.
The guilty plea resolves his admission of responsibility for the four federal counts identified in the plea announcement, while the status of the remaining indictment counts was not specified in the available report.
The financial consequences identified by prosecutors are substantial: more than 10 victims suffered a combined net loss of $1,159,945.34 after money they believed was being invested in cryptocurrency was instead gambled away.
The case serves as a reminder that cryptocurrency-related fraud does not always involve the theft of digital assets through technical exploits or the compromise of blockchain networks. Investment claims, deceptive representations and the misuse of funds entrusted to an individual can also form the basis of federal criminal charges.
As the case moves toward sentencing, the central issue is no longer whether Redzepagic committed the four offences to which he pleaded guilty, but what punishment the court will impose and how the remaining charges will be addressed.
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