According to Reuters, U.S. resident Edward Zimbardi from Georgia was deported from Fiji to the United States for allegedly operating a cryptocurrency Ponzi scheme and now faces 12 counts of wire fraud, 12 counts of money laundering, and one count of money laundering conspiracy. Prosecutors allege that between June 2022 and August 2023, Zimbardi marketed a cryptocurrency investment plan to over 6,000 investors, claiming that a $550 investment would guarantee a 25% monthly return. Zimbardi did not purchase advertising packages; instead, he used the funds for forex trading, losing tens of millions of dollars, spent at least $10 million on personal expenses, and paid earlier investors with funds from new investors, resulting in losses exceeding $165 million for investors.
Georgia man Edward Zimbardi charged in $165 million crypto Ponzi scheme
AiCoinShare
Summary
A man from Georgia, Edward Zimbardi, has been extradited from Fiji to the U.S. and faces 12 counts of wire fraud, 12 counts of money laundering, and one count of conspiracy to commit money laundering. Prosecutors allege he operated a crypto market Ponzi scheme from June 2022 to August 2023, targeting more than 6,000 investors with promises of a 25% monthly return. Funds were used for forex trading, personal expenses, and paying earlier investors, resulting in over $165 million in losses. The case underscores risks in the crypto market and may influence which altcoins investors monitor as caution increases.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.