Key facts
- Edward Zimbardi faces federal charges for allegedly operating a $165 million cryptocurrency Ponzi scheme.
- The scheme allegedly defrauded over 6,000 investors.
- Zimbardi promised investors a 25% monthly return on their cryptocurrency.
- Funds were allegedly lost on foreign currency trades and spent on personal expenses.
- Zimbardi was deported from Fiji to the U.S. to face charges.
Edward Zimbardi, the alleged mastermind of a $165 million cryptocurrency Ponzi scheme, has been deported from Fiji to the United States to face federal fraud and money laundering charges. The US Attorney’s Office for the Northern District of Georgia announced that Fijian authorities deported Zimbardi on Friday in coordination with the FBI and State Department. He was scheduled to appear before a federal magistrate judge in Los Angeles, with prosecutors seeking his detention pending proceedings in Georgia.
Prosecutors allege Zimbardi promoted a scheme called “The Crypto Program” from June 2022 to August 2023, promising guaranteed returns of 25% monthly on investments in advertising packages. Thousands of investors allegedly sent over $165 million in cryptocurrency to wallets he secretly controlled. Instead of purchasing advertising, Zimbardi allegedly placed more than $34 million in risky foreign currency trades, used later investments to pay off earlier investors, and spent at least $10 million on personal expenses, including a house, luxury vehicles, and alimony.
Zimbardi was indicted on July 8 on 12 counts of wire fraud, 12 counts of money laundering, and one money laundering conspiracy count. Prosecutors allege he fled to Fiji after learning of the FBI investigation and remained there for over a year.