Wolcott Man Indicted for Cryptocurrency Fraud Scheme

David X. Sullivan, United States Attorney for the District of Connecticut, and Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that ELMIN REDZEPAGIC, 24, of Wolcott, has been charged in a 21-count indictment offenses related to an alleged cryptocurrency fraud scheme.

As alleged in the indictment, between approximately May 2021 and March 2025, Redzepagic held himself out to investors as a cryptocurrency investor who earned high rates of return.  Once Redzepagic had victims’ initial investment, he told them they had earned a substantial profit but had to pay additional fees (“gas fees”) to withdraw it.  Redzepagic claimed to work as part of a team that included someone known as “The Chef,” who supposedly led the operation and determined who, how, and when investors would receive their profits.  In fact, Redzepagic did not invest victims’ funds in cryptocurrency but instead transferred the funds to Stake.com, an offshore gambling platform that Redzepagic used to receive and hold proceeds of the scheme, to generate cryptocurrency addresses for victims to use to transfer Bitcoin to him, and to make large “lulling” payments to victims throughout the course of the scheme.

It is alleged that Redzepagic lost victims’ funds gambling on Stake.com, causing a net loss of a total of approximately $950,000 to multiple victims.

It is further alleged that when Redzepagic was interviewed by IRS Criminal Investigation agents in September 2023, he made several false statements.

On January 20, 2026, a federal grand jury in New Haven returned an indictment charging Redzepagic with seven counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; 11 counts of international money laundering, an offense that carries a maximum term of imprisonment of 20 years on each count; and three counts of making a false statement to IRS Criminal Investigation agents, an offense that carries a maximum term of imprisonment of five years on each count.

Redzepagic, who recently resided in Florida, appeared today before U.S. Magistrate Judge Thomas O. Farris in Hartford, pleaded not guilty to the charges in the indictment, and was released on a $500,000 bond.

U.S. Attorney Sullivan stressed that an indictment is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Susan Wines.