Edward Zimbardi extradited over $165M crypto Ponzi scheme

Edward Zimbardi was extradited to the US for allegedly running a $165M crypto Ponzi scheme, promising 25% monthly returns and misusing investor funds.

Edward Zimbardi, 59, has been extradited from Fiji to the United States to face federal charges for allegedly running a $165 million cryptocurrency Ponzi scheme known as The Crypto Program. Prosecutors claim that from June 2022 to August 2023, Zimbardi promoted investments in advertising packages, promising a fixed 25% monthly return to investors. Authorities allege that thousands of investors sent over $165 million in cryptocurrency to wallets controlled by Zimbardi. Instead of purchasing advertising as promised, he reportedly lost over $34 million on speculative forex trades, used new investors’ funds to pay earlier participants, and spent at least $10 million on personal expenses, including a house for his son and luxury goods. The scheme collapsed in August 2023, leaving investors unable to recover their funds. Zimbardi now faces multiple counts of wire fraud and money laundering. The FBI has launched a portal for victims to report losses, and a cease-and-desist order was issued against The Crypto Program in June 2023.