Key facts
- A Tennessee man has been indicted on 11 federal charges.
- The charges relate to an alleged cryptocurrency Ponzi scheme.
- The scheme operated through Star Credit Holdings.
- The alleged scheme ran from 2020 to 2024.
- Prosecutors claim millions were defrauded from investors.
- New investor funds were allegedly used to pay old investors.
- Over $1.9 million was allegedly diverted for personal use.
A Tennessee man is facing 11 federal charges for allegedly orchestrating a cryptocurrency Ponzi scheme that operated from 2020 to 2024. The indictment details accusations that the man, through his company Star Credit Holdings, defrauded investors of millions of dollars. Prosecutors claim that the scheme functioned by using funds from new investors to pay returns to earlier investors, a hallmark of Ponzi schemes. In addition to these alleged fraudulent payouts, the indictment also states that the man diverted over $1.9 million of investor funds for his personal use. The alleged scheme ran for approximately four years before federal charges were filed. The specific nature of the cryptocurrency used and the total number of investors were not detailed in the initial indictment.