Edward Zimbardi faces 25 fraud and money laundering counts tied to a scheme promising 25% monthly returns to investors.
Edward Zimbardi, 59, appeared in federal court after Fijian authorities deported him to the U.S. on August 14. He faces charges for operating a $165 million Ponzi scheme, The Crypto Program, from June 2022 to August 2023.
Prosecutors allege Zimbardi lured investors with a guaranteed 25% monthly return, directing funds into wallets he controlled. The DOJ claims he gambled $34 million on risky trades, paid earlier investors with new funds, and spent $10 million on personal expenses.
The scheme collapsed after Zimbardi fled to Fiji, where authorities coordinated with the FBI and State Department to secure his deportation. The case highlights regulatory scrutiny of high-yield crypto investment schemes.