Crypto Scam Lawsuit Alleges $1 Million Bitcoin Losses Linked to Betting on Stake.com
New Federal Case Connects Crypto Gambling to Investment Fraud
Federal prosecutors in Connecticut have initiated a significant case implicating the crypto gambling platform Stake.com in a prolonged investment fraud scheme lasting nearly four years. A 24-year-old man is facing multiple federal charges for allegedly soliciting Bitcoin investments under false promises of reliable returns, only to misuse the funds for other purposes.
Potential Prison Time Looms Over the Defendant
The indictment filed on January 20 accuses Elmin Redzepagic of presenting himself as a skilled digital asset trader who assured clients steady profits through cryptocurrency market ventures. However, when investors tried to retrieve their funds, they encountered numerous obstacles. Redzepagic reportedly demanded additional processing fees to release the funds and provided excuses involving a mysterious trading group to justify delays.
Authorities assert that this misleading story concealed the true events. Prosecutors claim Redzepagic diverted large amounts of Bitcoin from investors to accounts on Stake.com, where he lost about $950,000 gambling online. The charges include seven counts of wire fraud, eleven counts of international money laundering, and three counts of making false statements to the IRS Criminal Investigation Division. Each wire fraud and money laundering count carries up to 20 years in prison if convicted.
Defendant Maintains Innocence
Redzepagic appeared in federal court in Hartford and pleaded not guilty to all charges. He was released on a $500,000 bond pending further legal action. Officials stressed that he is presumed innocent until proven guilty, and the prosecution must establish their case beyond a reasonable doubt.
The alleged fraudulent activities reportedly took place from May 2021 through March 2025, during which victims were directed to transfer cryptocurrency to wallets controlled by Redzepagic. The investigation is being led by the IRS Criminal Investigation Division, with Assistant US Attorney Susan Wines prosecuting the case.
Stake.com Faces Increasing Scrutiny Amid Legal Challenges
This case adds to the controversies surrounding Stake.com. Recently, prominent figures such as rapper Drake and streamer Adin Ross were named in a class-action lawsuit accusing them of promoting the platform’s dual-currency system in a way that encouraged real-money gambling disguised as low-risk gameplay. These issues have raised concerns among state regulators, increasing pressure on the gambling platform.
