Federal indictment alleges Misam M. Abidi defrauded investors through false guarantees and diverted funds for personal use.
A Tennessee man faces 11 federal counts for allegedly operating a crypto Ponzi scheme via Star Credit Holdings from 2020 to 2024. Prosecutors claim Misam M. Abidi lured investors with promises of guaranteed returns and a reserve fund, diverting over $1.9 million for personal use.
Abidi allegedly paid earlier investors with new funds, a classic Ponzi tactic, and encouraged victims to take personal loans to invest more. Charges include wire fraud, money laundering, and filing false tax returns, with potential decades-long prison sentences if convicted.
The scheme reportedly misrepresented the firm’s capital and trading activities, falsely assuring investors of high returns. No immediate market reaction was reported.