Wolcott Man Pleads Guilty to Charges Stemming from Cryptocurrency Fraud Scheme

David X. Sullivan, United States Attorney for the District of Connecticut, announced that ELMIN REDZEPAGIC, 25, of Wolcott, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to offenses related to a cryptocurrency fraud scheme.

According to court documents and statements made in court, 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, generate cryptocurrency addresses for victims to use to transfer Bitcoin to him, and make large "lulling" payments to victims throughout the course of the scheme.

Redzepagic lost victims' funds gambling on Stake.com, causing a net loss of a total of $1,159,945.34 to more than 10 victims. When Redzepagic was interviewed by IRS Criminal Investigation agents in September 2023, he made several false statements.

Redzepagic pleaded guilty to two counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; one count of international money laundering, an offense that carries a maximum term of imprisonment of 20 years; and one count of making a false statement to IRS Criminal Investigation agents, an offense that carries a maximum term of imprisonment of five years. Judge Dooley scheduled sentencing for January 11, 2027.

Redzepagic was arrested on February 12, 2026. He is released on a $500,000 bond pending sentencing.

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.