Wolcott Man Elmin Redzepagic Pleads Guilty in Crypto 'Gas Fee' Scheme, Gambled Victims' Money

Published Oct. 20, 2026. Case status is current as of that date.

The profits looked real, right up until investors tried to withdraw them. Then came the "gas fees." According to federal prosecutors in Connecticut, the money was never invested in cryptocurrency. It went to an offshore gambling site, where it was lost.

On Oct. 19, 2026, Elmin Redzepagic, 25, of Wolcott, Connecticut, pleaded guilty before U.S. District Judge Kari A. Dooley in Bridgeport to two counts of wire fraud, one count of international money laundering and one count of making a false statement to IRS Criminal Investigation agents, the U.S. Attorney's Office for the District of Connecticut announced [1].

Status: Pleaded guilty; sentencing is scheduled for Jan. 11, 2027. Redzepagic, who was arrested Feb. 12, 2026, is released on a $500,000 bond pending sentencing [1].

How the scheme worked

According to court documents and statements made in court, as described by prosecutors [1]:

1. The persona. Between about May 2021 and March 2025, Redzepagic presented himself to investors as a cryptocurrency investor who earned high rates of return.
2. The fake win. After receiving a victim's initial investment, he told them they had earned a substantial profit.
3. The fee. To withdraw that profit, victims were told they first had to pay additional fees, which he called "gas fees."
4. The mystery boss. Redzepagic claimed to work on a team that included someone known as "The Chef," who supposedly led the operation and decided who would be paid, how and when.
5. Where the money really went. Instead of investing in cryptocurrency, he transferred victims' funds to Stake.com, an offshore gambling platform. Prosecutors say he used the platform to receive and hold proceeds, to generate cryptocurrency addresses that victims used to send him Bitcoin, and to make large "lulling" payments to victims that kept the scheme going.

Redzepagic lost the victims' money gambling on Stake.com, causing a net loss of $1,159,945.34 to more than 10 victims, according to prosecutors [1].

When IRS Criminal Investigation agents interviewed him in September 2023, he made several false statements, the release said. That conduct is the basis of the false-statement count [1].

The person charged

Elmin Redzepagic, 25, of Wolcott, Conn. He has pleaded guilty to all four counts described above. Each wire fraud count and the international money laundering count carry a maximum of 20 years in prison; the false statement count carries a maximum of five years [1]. The actual sentence will be decided by the judge.

IRS Criminal Investigation investigated the case, and Assistant U.S. Attorney Susan Wines is prosecuting it [1]. The release does not name anyone else as charged, and does not identify "The Chef" as a real person.

Why "pay to withdraw" is the tell

Fake withdrawal fees are one of the most common features of crypto investment fraud. The FTC describes the pattern directly: the "investment account" looks real, but "you won't be able to withdraw your money at all, or only if you pay high fees" [2].

The "lulling" payments in this case matter too. Small payouts make a scheme look legitimate, encourage victims to invest more, and delay the moment anyone goes to the authorities. Legitimate platforms generally deduct any fees from your balance rather than demanding a separate payment before you can withdraw.

Red flags

• Big, steady profits from a friend or acquaintance who says they're a skilled crypto trader. "Only scammers will guarantee profits or big returns," the FTC says [2].
• You must pay "gas fees," taxes or unlock fees before you can withdraw.
• An unseen boss or "team" decides when you get paid.
• You're told to send Bitcoin to addresses that change, or that come from a gambling or other unrelated platform.
• Small payouts arrive just as you start asking questions.

What to do

1. Try a small withdrawal early, and walk away if you're asked to pay anything to get your own money back.
2. Don't send more money to "unlock" profits. Fees demanded in advance are a hallmark of fraud [2].
3. Search the person's name with words like "scam," "complaint" or "review" before investing [2].
4. Report it to the FTC at ReportFraud.ftc.gov, the FBI's IC3 at ic3.gov, the CFTC, the SEC at sec.gov/tcr, and the exchange you used to send the crypto [2].

Case status (as of Oct. 20, 2026)

Defendant	Court	Status as of Oct. 20, 2026	Source
Elmin Redzepagic, 25, Wolcott, Conn.	Federal, D. Conn.	Arrested Feb. 12, 2026; pleaded guilty Oct. 19, 2026, to two counts of wire fraud, international money laundering and a false statement; sentencing set for Jan. 11, 2027; released on $500,000 bond	[1]

Statuses can change.

Sources

1. U.S. Attorney's Office, District of Connecticut, "Wolcott Man Pleads Guilty to Charges Stemming from Cryptocurrency Fraud Scheme," Oct. 19, 2026. https://www.justice.gov/usao-ct/pr/wolcott-man-pleads-guilty-charges-stemming-cryptocurrency-fraud-scheme
2. Federal Trade Commission, Consumer Advice, "What To Know About Cryptocurrency and Scams" (accessed Oct. 20, 2026). https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams

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