Ex-College Basketball Player Admits Gambling Away $1.16M in Stolen Crypto Funds on Stake.com

A former college basketball player has pleaded guilty to federal wire fraud and money laundering charges after defrauding cryptocurrency investors out of $1.16 million and gambling the proceeds away on offshore casino Stake.com.

Elmin Redzepagic, 25, of Wolcott, Conn., entered his plea Monday before US District Judge Kari A. Dooley in Bridgeport, according to the US Attorney’s Office for the District of Connecticut.

The former Southern Connecticut State University (SCSU) basketball player admitted siphoning investors’ funds into Stake.com, causing losses of $1,159,945 to more than 10 victims.

When Casino.org reported his indictment in February, Redzepagic denied wrongdoing. At that time, prosecutors estimated the losses at around $950,000.

Mysterious ‘Chef’ Ran the Show

Between May 2021 and March 2025, Redzepagic presented himself as a successful cryptocurrency investor capable of generating substantial returns from trading digital assets.

He claimed to be part of an investment operation run by a mysterious figure known as “The Chef,” who supposedly determined how profits were distributed and which investors received payouts.

Once victims handed over their money, Redzepagic told them their investments had generated substantial profits. However, before they could withdraw their earnings, they needed to pay additional charges he described as “gas fees.”

While gas fees represent legitimate transaction costs on cryptocurrency networks, Redzepagic used the term merely as a pretext to extract more money from his victims, according to prosecutors.

In reality, he wasn’t investing their money at all.

Instead, he transferred the funds to Stake, using the platform to receive and hold proceeds, generate cryptocurrency addresses for Bitcoin transfers, and make occasional payouts designed to convince victims their investments were legitimate.

These so-called “lulling payments” helped perpetuate the scheme while Redzepagic continued gambling away the funds.

Lies to Investigators

Redzepagic was also accused of lying during a September 2023 interview with IRS Criminal Investigation agents.

According to the original indictment, he denied continuing to use an offshore gambling platform and claimed that another man, whom he called “Greg,” had doubled investors’ money. Investigators determined that Greg did not exist.

The fraud began while Redzepagic was still playing basketball for SCSU, making 31 appearances between 2019 and 2023, averaging 1.7 points per game.

A federal grand jury initially charged him with 21 offenses, including seven counts of wire fraud, 11 counts of international money laundering, and three counts of making false statements.

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

The fraud and money laundering offences each carry a statutory maximum of 20 years in prison, while the false statement offence carries up to five years.

Redzepagic, who was arrested February 12, remains free on a $500,000 bond pending sentencing scheduled for January 11, 2027.