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Crypto Program promoter Edward Zimbardi deported to U.S. over $165M scheme

Prosecutors say investors were promised a 25.0% monthly return, but Zimbardi allegedly diverted funds to trading losses and personal spending.

Reported · Written up by our desk · Regulation

The Block reports that Edward Zimbardi, the promoter of an alleged cryptocurrency Ponzi scheme called “The Crypto Program,” was deported from Fiji to the United States and returned to American soil after more than a year on the run.

According to the U.S. Attorney's Office for the Northern District of Georgia, Zimbardi was scheduled to appear in federal court in Los Angeles on Monday to face charges that include 12 counts of wire fraud, 12 counts of money laundering, and one count of money laundering conspiracy, and prosecutors said they plan to seek detention pending further proceedings.

Prosecutors allege Zimbardi promoted the scheme between June 2022 and August 2023 using videos and websites that offered advertising packages with a guaranteed 25.0% monthly return. Investors were allegedly directed to transfer crypto to wallets that Zimbardi secretly controlled, with thousands of investors sending more than $165.0 million.

The outlet says prosecutors allege Zimbardi did not use investor funds to buy advertising packages, instead putting more than $34.0 million into foreign currency bets that resulted in substantial losses, and spending at least $10.0 million on personal expenses, including a house for his son, luxury vehicles, and alimony payments. The U.S. attorney said the case will now proceed with Zimbardi facing trial.

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