Crypto▼ Bearish
Fiji deports alleged $165M crypto Ponzi mastermind to US
Edward Zimbardi, 59, faces federal charges after Fiji deported him over an alleged $165M crypto Ponzi scheme promising 25% monthly returns through fake ad packages.
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Edward Zimbardi is back on U.S. soil after more than a year on the run. The 59-year-old from Flowery Branch, Georgia, was deported from Fiji on Aug. 14 following a federal indictment tied to an alleged crypto Ponzi scheme.
Federal prosecutors say Zimbardi created and promoted an investment operation called The Crypto Program. It ran between June 2022 and August 2023.
Promotional videos and websites reportedly told investors they could buy digital advertising packages. These packages allegedly came with a guaranteed monthly return of 25%.
Investors were told to send cryptocurrency to wallets that prosecutors say Zimbardi secretly controlled. More than $165 million allegedly flowed into those wallets from thousands of participants.
Prosecutors say the advertising packages were never purchased. Instead, they allege Zimbardi used money from new investors to pay earlier ones, a common structure in Ponzi schemes.
More than $34 million of investor funds allegedly went into risky foreign currency trades. Those trades reportedly lost a large amount of money, though no exact figure was given.
The indictment also claims Zimbardi spent at least $10 million on personal items. This allegedly included a house for his son, luxury vehicles, and alimony payments to his ex-wife.
U.S. Attorney Theodore S. Hertzberg said Zimbardi tricked thousands of people with false promises of large returns. He said Zimbardi then tried to evade prosecution by fleeing overseas.
The Crypto Program allegedly collapsed in August 2023, and investors were unable to get their money back. Zimbardi then traveled to Hawaii, Fiji, and other locations.