Rashawn Russell, a New York resident, has been charged with fraud by the Commodity Futures Trading Commission (CFTC) in a civil enforcement action filed in the U.S. District Court for the Eastern District of New York on April 11, 2023. The CFTC alleges Russell fraudulently solicited investments for a digital asset trading fund and misappropriated at least $1 million in investor funds.
According to the complaint, from approximately November 2020 through July 2022, Russell convinced retail investors to contribute Bitcoin, Ether, and fiat currency to his purported proprietary digital asset trading fund. He allegedly guaranteed investors no losses and, in some cases, promised a minimum 25 percent return on investment. The CFTC claims Russell made false and misleading statements regarding the fund’s structure, size, and performance.
The complaint further alleges that Russell traded little to none of the investor funds as represented and falsely promised to fulfill withdrawal requests, including assurances of payment in the stablecoin USDC. The CFTC believes Russell misappropriated at least $1 million, using the funds for personal expenses, gambling-related entities, and Ponzi-like payments to existing investors.
In a parallel criminal case, Russell was charged with one count of wire fraud by the Department of Justice in the Eastern District of New York on April 6, 2023, with the indictment unsealed today. The case is United States v. Rashawn Russell, Case No. 23-cr-00152.
The CFTC is seeking restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations. The agency was assisted by the Department of Justice, Fraud Section.
Those with information about potential violations of commodity trading laws are encouraged to contact the CFTC via its toll-free hotline at 866-FON-CFTC (866-366-2382), file a tip online, or contact the CFTC Whistleblower Office.
Source: CFTC.gov
Related Federal Cases
- Christopher Ferguson, Securities Fraud, New York 2020 · Ohio
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- Sark Wire Corporation, PPP Loan Fraud, New York 2023 · Ohio
- Sark Wire Corporation, PPP Loan Fraud, New York 2020 · New York
- James Pavlounis, Social Security Disability Benefits Fraud, New York 2025 · Oregon
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News