A 25-year-old Connecticut man has pleaded guilty to federal fraud and money laundering charges after using money entrusted to him for cryptocurrency investments to gamble on offshore platform Stake.com, causing losses of more than $1.16 million.

Elmin Redzepagic, of Wolcott, entered his plea on October 19 before U.S. District Judge Kari A. Dooley in Bridgeport. The former Southern Connecticut State University basketball player admitted participating in a scheme that defrauded more than 10 victims between May 2021 and March 2025.

According to federal prosecutors, Redzepagic presented himself as a successful cryptocurrency investor capable of generating substantial returns. He persuaded individuals to transfer funds for investment purposes but instead directed the money toward online gambling.

The scheme resulted in confirmed net losses of $1,159,945.34, according to the U.S. Attorney’s Office for the District of Connecticut.

Redzepagic pleaded guilty to two counts of wire fraud, one count of international money laundering and one count of making a false statement to federal investigators.

Fake Investment Profits Used to Demand Additional Payments

Redzepagic convinced victims that their cryptocurrency investments had generated significant profits.

When investors attempted to withdraw their supposed earnings, he demanded additional payments described as “gas fees.”

Although gas fees are legitimate transaction costs associated with cryptocurrency networks, prosecutors said Redzepagic used the term to obtain further payments from victims.

According to CT Insider, he also claimed to work with an investment team led by a mysterious figure known as “The Chef,” who supposedly controlled the distribution of profits.

The explanation helped account for delays in processing withdrawals while maintaining the appearance of a legitimate investment operation.

Investigators found that Redzepagic had transferred the funds to Stake.com, using the gambling platform to receive payments and generate cryptocurrency addresses for Bitcoin transfers.

He also made occasional payments to investors to reassure them that their money remained secure.

Prosecutors described these transactions as “lulling” payments intended to maintain victims’ confidence while the fraudulent activity continued.

The money was ultimately lost through gambling on the platform.

Federal Investigation Uncovers Additional False Claims

The scheme began while Redzepagic was still associated with Southern Connecticut State University’s basketball programme.

He played for the university between 2019 and 2023, appearing in 31 games and averaging 1.7 points per game.

During a September 2023 interview with Internal Revenue Service Criminal Investigation agents, Redzepagic made several false statements about his activities.

According to the original indictment, he denied continuing to use an offshore gambling platform and claimed another individual, whom he called “Greg,” had doubled investors’ money.

Investigators determined that Greg did not exist.

A federal grand jury subsequently charged Redzepagic with 21 offences, including seven counts of wire fraud and 11 counts of international money laundering. Three additional charges concerned false statements to investigators.

Authorities arrested him on February 12, 2026, after which he initially denied wrongdoing.

At the time of his indictment, prosecutors estimated the financial losses at approximately $950,000. The updated amount presented following his guilty plea exceeded $1.16 million.

The case involved more than 10 victims who had entrusted Redzepagic with funds under the belief that he would invest them in cryptocurrency.

Sentencing Scheduled for January 2027

Redzepagic is scheduled to appear for sentencing on January 11, 2027, before Judge Dooley.

Each wire fraud count carries a statutory maximum sentence of 20 years in prison. The international money laundering offence carries the same maximum, while the false-statement charge is punishable by up to five years.

The court will determine the actual sentence based on the applicable legal requirements and circumstances of the case.

Redzepagic remains free on a $500,000 bond pending sentencing.

The Internal Revenue Service’s Criminal Investigation division investigated the scheme, and Assistant U.S. Attorney Susan Wines is handling the prosecution.

The guilty plea establishes Redzepagic’s admission to the four federal offences, with the January hearing set to determine the penalties arising from his fraudulent handling of investors’ funds.