June 25, 2024

This post was published on June 6, 2024, 06:43h and has been updated since, with the last update on June 6, 2024, 10:18h.

Imprisonment for three years and five months awaits a former investment banker at Deutsche Bank after masterminding a pseudo-ponzi cryptocurrency scam causing investors to lose $1.5 million.

![Rashawn Russell](https://investmentshoax.com/wp-content/uploads/2024/06/Rahawn-Russell-858×572.jpg)
Beneath this great intellect and promising future for Rashawn Russell lay a debilitating addiction to gambling and substance abuse, his undoing.

Rashawn Russell, a 28-year-old resident of Brooklyn, deceived his victims into believing they would get up to 100% investment returns through crypto trades under his R3 Crypto Fund. However, the federal prosecutors unveiled his true usage of the fund to pay for personal expenses including gambling while he robbed Peter to pay Paul, in figurative terms.

Russell involved himself in another scam where he stole about 140 credit, debit, and IDs, majorly from gyms situated in New York and New Jersey. He manipulated the stolen information to set up online gambling accounts and to make imaginary purchases.

Unkept Promises

Russell exploited his posh knowledge in finance as a decoy to dupe his victims into trusting his fund. He started his career as an investment banking analyst at Deutsche Bank New York and then moved on to become an associate.

Between November 2020 and August 2022, he lured friends, former Deutsche Bank colleagues and old acquaintance into investing in R3 Crypto with the fake promise of ensuring at least 25% returns just within three months. The money was instead used to gamble and pay for prior investor’s debts, according to the court documentation.

He doctored documents to reassure investors of their fund’s safety. This is illustrated by an instance where he presented a screenshot of a bogus bank balance indicating $355k while the original had about $35k.

When investors started demanding repayment, on sensing something was off, Russell bought time by displaying fake screenshots allegedly showing wire transfer confirmations. These transfers were never made.

‘Gifted Leadership’

Russell migrated to the US with his family from Jamaica at the age of 15. His exceptional leadership skills helped him clinch a scholarship to New York City’s High School of Economics and Finance. He later earned a Gates Millennium Leadership Scholarship at the Babson College in Boston.

Addressing Judge Hector Gonzalez in a letter, Russell confessed his decline into a pathological addiction to substance and gambling and expressed deep regret for his deeds.

According to him, his revitalization and newfound purpose were thanks to the Holy Spirit’s intervention.

In February, Russell was imprisoned as the prosecutors accused him of continuance of his identity theft fraud even after arrest. He’s now required to reimburse $1.5 million as restitution to his victims.

Frequently Asked Questions

What is Rashawn Russell’s Background?

Rashawn Russell, aged 28, is a former investment banker at Deutsche Bank New York and the mastermind behind a $1.5 million crypto fraud scheme. He migrated with his family to the U.S. from Jamaica at the age of 15.

What was the Nature of Russell’s Cryptocurrency Scam?

Russell promised his victims high returns on their investments through cryptocurrency trades with his company, the R3 Crypto Fund. However, instead of investing the funds, he used them for gambling and personal expenses.

What Was the Outcome of Russell’s Case?

Russell confessed to his crimes and was sentenced to three years and five months in prison. He has been ordered to pay over $1.5 million in restitution to his victims.