Wolcott Man from Connecticut Indicted in $950K Cryptocurrency Fraud Scheme
By Staff Reporter | Published January 21, 2026
A federal grand jury in New Haven has indicted a Wolcott, Connecticut resident on charges of orchestrating a sophisticated cryptocurrency fraud scheme that allegedly defrauded victims of nearly $1 million. The defendant, identified as Redzepagic, faces seven counts of wire fraud stemming from the elaborate scam.[1]
Details of the Alleged Scheme
The indictment, returned on January 20, 2026, accuses Redzepagic of using deceptive tactics to lure victims into investing in fraudulent cryptocurrency opportunities. According to the U.S. Attorney’s Office for the District of Connecticut, the scheme involved false promises of high returns and fabricated trading platforms designed to mimic legitimate investment services.[1]
Victims were reportedly induced to transfer funds via wire, believing they were participating in lucrative crypto trades. Instead, the money was siphoned off, resulting in losses totaling approximately $950,000. The charges highlight the growing prevalence of digital currency scams exploiting the volatility and hype surrounding cryptocurrencies.[1]
Background on the Defendant
Redzepagic, a Wolcott man, is described in court documents as the primary architect of the fraud. While media outlets have referred to him variably as a “Florida man from Connecticut,” official records confirm his residence in Wolcott, a town in central Connecticut.[1]
The case underscores a pattern of financial crimes originating from Connecticut, as evidenced by recent indictments in the same district. For instance, two Glastonbury men were charged with using thousands of stolen identities to defraud online gambling sites like FanDuel of $3 million, involving 45 counts of fraud, identity theft, and money laundering.[1][3]
In another related matter, a 73-year-old Middlefield resident, Dominick N. Donofrio, pleaded guilty to a $2.5 million wire fraud scheme. These cases illustrate the U.S. Attorney’s aggressive stance against white-collar crime in the region.[1]
Rising Tide of Cryptocurrency Scams
Cryptocurrency fraud has surged in recent years, with the Federal Trade Commission reporting billions in losses annually. Scammers often prey on inexperienced investors by promoting “guaranteed” returns through fake apps, social media, and phishing emails. The Justice Department notes that wire fraud charges are a common tool in prosecuting these schemes, carrying potential penalties of up to 20 years in prison per count.[1]
Experts warn that the pseudonymous nature of crypto transactions makes recovery difficult. “Once funds hit a scammer’s wallet, they’re often tumbled through mixers or converted to privacy coins, vanishing into the blockchain,” said a cybersecurity analyst familiar with such cases.
“The scheme involved false promises of high returns and fabricated trading platforms.”
— U.S. Attorney’s Office, District of Connecticut[1]
Legal Proceedings and Next Steps
Redzepagic is scheduled to appear for arraignment in U.S. District Court in New Haven. If convicted on all counts, he faces a maximum sentence of 140 years in federal prison and substantial fines. The case is being prosecuted by Assistant U.S. Attorneys, with investigations led by the FBI and IRS Criminal Investigation division.[1]
Authorities are urging potential victims to come forward. “We encourage anyone who believes they may have been targeted to contact law enforcement,” a spokesperson for the U.S. Attorney’s Office stated.
Broader Implications for Crypto Investors
This indictment serves as a stark reminder amid a booming crypto market. Regulatory bodies like the SEC have ramped up enforcement, targeting unregistered exchanges and pump-and-dump schemes. Investors are advised to verify platforms through official channels and avoid unsolicited investment offers.
Connecticut’s Department of Consumer Protection has issued warnings about similar scams, noting a spike in complaints. In a related filing, documents reveal how fraudsters exploit stolen identities for illicit gains, mirroring tactics in the Wolcott case.[3]
| Defendant(s) | Alleged Loss | Charges |
|---|---|---|
| Redzepagic (Wolcott) | $950K | 7 counts wire fraud |
| Amitoj Kapoor & Siddharth Lillaney (Glastonbury) | $3M | 45 counts fraud, ID theft, laundering |
| Dominick N. Donofrio (Middlefield) | $2.5M | Wire fraud (guilty plea) |
Community Impact and Prevention Tips
Local communities in Wolcott and beyond are reeling from the betrayal. “It’s devastating to see someone from our town involved in this,” said a Wolcott resident. Financial literacy programs are being promoted to educate on scam red flags, such as pressure to act quickly or secrecy around investments.
- Verify legitimacy: Check for SEC registration and read independent reviews.
- Avoid high-pressure sales: Legitimate investments don’t demand immediate wire transfers.
- Report suspicions: Contact the FTC at ReportFraud.ftc.gov or local authorities.
- Use secure wallets: Never share private keys.
As the case unfolds, it reinforces the need for vigilance in the digital age. The Justice Department’s swift action signals zero tolerance for those exploiting emerging technologies for illicit gain.
This is a developing story. Check back for updates on court proceedings and victim impact statements.