$165M Crypto Ponzi Scheme Unraveled as Accused Mastermind Handed Over to US Authorities
A $165 million cryptocurrency Ponzi scheme has been unsealed by federal prosecutors in Georgia. Edward Zimbardi, 59, is accused of orchestrating the scheme that defrauded thousands of investors with promises of up to 25 percent monthly returns.
Zimbardi allegedly directed investors to move cryptocurrency into wallets he secretly controlled, claiming it was for advertising packages with a guaranteed return. Instead, prosecutors say he spent at least $34 million on foreign currency bets and used money from later investors to pay earlier ones.
Apart from personal expenses, including a house for his son and luxury vehicles, Zimbardi also made alimony payments. The scheme collapsed in August 2023, leaving investors unable to recover their funds.
Zimbardi fled the US after becoming aware of the FBI's investigation and remained in Fiji for over a year before being apprehended by authorities last week.