Ex-Deutsche Bank Employee Pleads Guilty to $1.5M Crypto Fraud

A former associate investment banker at Deutsche Bank has entered a guilty plea in the R3 Crypto Fund fraud case.

A guy hiding behind Deutsche Bank with red DeFi and coins coming out his hair.
Created by Kornelija Poderskytė from DailyCoin
  • A former investment banker at Deutsche Bank has pleaded guilty to crypto fraud.
  • The banker duped investors into funding his personal lifestyle.
  • His guilty plea comes with restitution conditions and a possible prison sentence.  

Rashawn Russell, a former associate investment banker at Deutsche Bank, has pleaded guilty to multiple criminal counts commissioned in furtherance of the infamous R3 Crypto Fund fraud.

Russell was first arraigned before the federal court in Brooklyn in April on an indictment charging him with orchestrating an elaborate million-dollar crypto investment scheme to fund his lifestyle.

A Scheme Built on Fraud and Deception

According to a September 19 press release by the U.S. Attorney’s Office for the Eastern District of New York, Russell pleaded guilty to one count of participating in a scheme that defrauded clients of the R3 Crypto Fund and one count of engaging in a separate identity theft scheme.


“Russell leveraged investor interest in cryptocurrency markets to perpetrate a scheme to defraud clients who trusted him,” United States Attorney Breon Peace said.

As a former registered broker with the Financial Industry Regulatory Authority, Russell allegedly exploited the trust of 29 investor clients who lost over $1.5M to his scheme. In addition to the fraud, Russell fraudulently obtained over 15 credit cards between September 2021 and June 2023 with the intention of using them for unauthorized transactions.

While Russell often claimed that the fund would yield large and sometimes “guaranteed” returns through cryptocurrency investments, he allegedly plundered the money and fabricated multiple bank documents to assure investors of his “substantial liquidity.”

Fund Misappropriation

The prosecution alleges that contrary to what Russell made the investors believe, he used their money from the R3 Crypto Fund to gamble, repay earlier investors, and pay his personal expenses.


As part of the plea agreement, Russell has agreed to pay a restitution of over $1.5 million, and he risks facing up to 30 years in prison upon sentencing.

Read more about the lawyer who was convicted in OneCoin crypto fraud saga:
OneCoin Lawyer Loses Appeal in $400M Money Laundering Case

Read more about crypto’s most wanted criminals:
Crypto’s Most Wanted Criminals: Ruja Ignatova and Other Cryptocurrency Crooks

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.