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Alleged $165M crypto Ponzi mastermind returned to US for fraud charges
Prosecutors say Edward Zimbardi promised 25% monthly returns through “The Crypto Program” and used at least $34 million in investor funds for risky currency trades.
Cointelegraph reports that Edward Zimbardi, accused as the alleged mastermind of a $165 million crypto Ponzi scheme, was returned to the United States after being deported from Fiji to face federal fraud and money laundering charges.
According to the US Attorney’s Office for the Northern District of Georgia, Fijian authorities deported Zimbardi on Friday in coordination with the FBI and State Department. He was scheduled to appear before a federal magistrate judge in Los Angeles, while prosecutors sought detention pending proceedings in Georgia.
Prosecutors allege Zimbardi promoted “The Crypto Program” from June 2022 to August 2023, advertising investment packages that promised guaranteed 25% monthly returns. They say thousands of investors sent more than $165 million in crypto to wallets Zimbardi secretly controlled, but that the funds were not used as promised.
The filing alleges that instead of buying advertising packages, Zimbardi placed more than $34 million of the money into risky foreign currency trades, used later investments to pay earlier investors, and spent at least $10 million on personal expenses, including a house, luxury vehicles, and alimony. Zimbardi was indicted July 8 on 12 counts of wire fraud, 12 counts of money laundering, and one money laundering conspiracy count, after prosecutors say he fled to Fiji following the FBI investigation.