Tennessee Man Charged Over $1.9M Crypto Ponzi Scheme

Federal prosecutors charged a Tennessee resident on Friday with running a cryptocurrency investment operation that they say was a Ponzi scheme. The indictment names Misam M. Abidi, 47, of Nolensville, and his company Star Credit Holdings.

Court documents allege Abidi promised investors high returns and claimed the firm managed far more capital than it actually controlled. Prosecutors say he used money from newer investors to pay earlier participants, the classic Ponzi structure. More than $1.9 million went to Abidi and his family, according to the Justice Department.

The indictment covers activity from 2020 to 2024. Authorities also accuse Abidi of helping investors obtain personal loans, then directing those funds into Star Credit Holdings. One affidavit allegedly contained false claims that an investor’s identity had been stolen. Tax-related charges are included as well – prosecutors say Abidi failed to report income from the operation.

U.S. Attorney D. Michael Dunavant said in a statement that “Ponzi schemes, cryptocurrency scams, and financial fraud can be devastating to individual investors.” He added that such conduct harms financial institutions and the U.S. Treasury.

The charges include wire fraud, money laundering, operating an unlicensed money-transmitting business, and false tax return preparation. Each carries separate federal penalties. A trial date has not been set.

The case comes as bipartisan lawmakers introduced the Federal Cryptocurrency Theft Enforcement and Coordination Act, which would create a federal task force led by the attorney general and involving the DOJ, FBI, Homeland Security, and Treasury.