Connecticut man pleads guilty to $1.1M crypto fraud scheme with funds lost on offshore gambling site

A 25-year-old man from Wolcott, Connecticut, identified as E.R., has pleaded guilty in federal court in Bridgeport to charges tied to a cryptocurrency fraud in which investor money was lost on an offshore online gambling platform. He entered the pleas on Monday, October 19, according to the US Attorney's Office for the District of Connecticut.

He admitted 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 combined maximum sentence for the charges is 65 years in prison, though the court will determine the actual penalty. Sentencing is scheduled for January 11. He remains free on a $500,000 bond.

The case has been moving for some months. In February 2026 he appeared in federal court in Hartford before Magistrate Judge Thomas O. Farris and pleaded not guilty to all counts, after which he was released on the same bond while proceedings continued.

Authorities say the scheme ran from May 2021 to March 2025. He presented himself as a cryptocurrency investor able to generate high returns and attracted funds from several wealthy investors. After receiving the money, he told them they had earned substantial profits but had to pay additional "gas fees" before withdrawing. He also claimed to work with a team that included a person called "The Chef," who supposedly decided when and how profits would be paid out.

Investigators found that the funds were never invested in cryptocurrency. Instead, they were transferred to Stake.com, an offshore online gambling platform. Prosecutors said he used the site to hold the money, to generate cryptocurrency addresses to which victims sent Bitcoin, and to make large "lulling" payments to investors that kept up the appearance of a legitimate investment and discouraged suspicion.

His reported gambling losses on the platform totaled approximately $1,159,945, money prosecutors said came from more than 10 victims. Federal officials also said he made several false statements to IRS criminal investigation agents during an interview in September 2023. He was formally charged in February 2026, and the guilty pleas now set the case on course for sentencing early next year.