A Tennessee man faces 11 federal charges for allegedly operating a cryptocurrency Ponzi scheme through Star Credit Holdings from 2020 to 2024. Prosecutors claim he defrauded investors of millions, using new funds to pay old ones and diverting over $1.9 million for personal use.
The indictment highlights the ongoing risks of cryptocurrency investment fraud and the Justice Department's commitment to prosecuting financial crimes that harm investors and undermine financial institutions.
A Tennessee man, Misam M. Abidi, 47, of Nolensville, has been indicted on 11 federal charges for allegedly running a cryptocurrency Ponzi scheme through his firm, Star Credit Holdings, between 2020 and 2024. Prosecutors claim Abidi lured investors with false promises of high returns and a protected reserve fund.
Instead of legitimate trading, Abidi allegedly used funds from new investors to pay earlier ones, a characteristic of Ponzi schemes. He also allegedly facilitated personal loans for investors to channel more money into the firm and falsified documents to obtain such loans. It is alleged that Abidi diverted over $1.9 million of investor funds for his personal use and that of his family, while also failing to report the income on his tax returns.
U.S. Attorney D. Michael Dunavant stated that Ponzi schemes, crypto scams, and financial fraud are devastating to investors and detrimental to the U.S. Treasury. The indictment includes charges of wire fraud, operating an unlicensed money transmitting business, aiding in the preparation of false tax returns, and money laundering. If convicted, Abidi faces potentially decades in federal prison.