CT Man Pleads Guilty to $1.1M Crypto Fraud Scheme Linked to Online Gambling

A 25-year-old man from Wolcott, Connecticut, has admitted to federal charges after defrauding more than 10 cryptocurrency investors of approximately $1.1 million. Elmin Redzepagic entered his guilty pleas on Monday, October 19, 2026, in a federal court in Bridgeport. Authorities revealed that the funds, which were supposed to be invested in high-return cryptocurrency portfolios, were instead funneled into the offshore online gambling platform Stake.com to cover his personal gambling losses.

Between May 2021 and March 2025, Redzepagic portrayed himself as a savvy cryptocurrency investor capable of generating significant returns. He successfully attracted large sums of money from multiple wealthy individuals. However, investigators discovered that the money was never invested. Instead, Redzepagic used the gambling site to harbor the funds and generate Bitcoin addresses for victims to send their money to. To maintain the illusion of a legitimate business, he made large "lulling" payments to investors, making them believe they were receiving actual profits.

Numbers and facts

According to federal prosecutors, Redzepagic’s total gambling losses on Stake.com amounted to $1,159,945. This entire sum was reportedly sourced from his victims. He also employed deceptive tactics, such as claiming that investors needed to pay additional "gas fees" before they could withdraw their supposed earnings. Furthermore, he invented a fictional team that included a figure known as "The Chef," who allegedly controlled the distribution of profits. Redzepagic pleaded guilty to two counts of wire fraud, one count of international money laundering, and one count of making false statements to IRS criminal investigation agents during an interview in September 2023.

Background

The case highlights the severe risks associated with unregulated offshore gambling platforms that lack stringent oversight. Redzepagic initially pleaded not guilty in February 2026 but changed his plea as the investigation by the U.S. Attorney’s Office for the District of Connecticut moved forward. He is currently released on a $500,000 bond. While his charges carry a maximum potential sentence of 65 years in prison, the final decision rests with the court during his sentencing scheduled for January 11, 2027.

"Redzepagic allegedly introduced himself as a cryptocurrency investor who had the means to generate high returns, thus managing to attract a lot of money from multiple wealthy investors." - U.S. Attorney’s Office for the District of Connecticut

Why it matters for German players

For players in Germany, this case serves as a stark warning about the dangers of using non-licensed offshore casinos. Under the German Interstate Treaty on Gambling 2021 (GlüStV 2021), only operators listed on the official GGL whitelist are legal. Platforms like Stake.com do not hold a German license and therefore do not adhere to the strict player protection and anti-money laundering standards required by German law. Using such sites leaves players without legal recourse and exposes them to potential fraud or loss of funds without any regulatory safety net.

In Germany, the GGL enforces a strict monthly deposit limit of 1,000 Euros across all licensed platforms via the LUGAS system. Additionally, the 1 Euro per spin limit on virtual slot machines is designed to prevent the rapid loss of large sums. These regulations are specifically intended to stop individuals from losing life-changing amounts of money, whether stolen or earned, in a short period. The lack of these safeguards on offshore sites is precisely what allowed Redzepagic to lose over a million dollars of other people's money.

What it means for GGL-licensed casinos

Casinos operating under a GGL license are required to implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. They must verify the source of funds for high-spending players to ensure that the money is not derived from criminal activities. A case like Redzepagic’s would likely be flagged much earlier in a regulated environment due to the centralized monitoring of deposit limits and the legal requirement to report suspicious financial behavior. This transparency protects both the integrity of the market and the players themselves.