Alleged $165 million Crypto Program promoter deported from Fiji to the U.S.
Edward Zimbardi faces federal fraud and money-laundering charges after prosecutors say investors were promised 25% monthly returns and sent crypto to wallets he controlled.
By The Third AnglePublished 3 min read
Illustrative courthouse imagery; it does not depict the defendant or the proceedings. Photo: Unsplash · Unsplash License
Edward Zimbardi, the alleged promoter of a $165 million cryptocurrency Ponzi scheme, was deported from Fiji to the United States on Aug. 14 and appeared in federal court, Decrypt reported. The Justice Department's primary case announcement says Zimbardi faces 12 counts of wire fraud, 12 counts of money laundering and one conspiracy count.
Prosecutors allege that Zimbardi built The Crypto Program around advertising packages that promised a guaranteed 25% monthly return. Investors were instructed to send cryptocurrency to wallets the government says he secretly controlled, rather than to a genuine advertising business.
The alleged flow of funds
The government says thousands of investors moved more than $165 million into the wallets. Prosecutors allege that more than $34 million was gambled on foreign-currency trades and that newer deposits were used to pay earlier participants, the pattern at the center of the government's Ponzi allegation.
The case also alleges that at least $10 million was spent on personal expenses. Those are accusations in a criminal case, not findings of guilt; Zimbardi is entitled to the presumption of innocence unless the charges are proved in court.
From California warning to federal case
The California Department of Financial Protection and Innovation previously issued a desist-and-refrain order identifying CryptoProgram and Edward Anthony Zimbardi. The new federal case moves the matter from a state securities warning to criminal charges and an international return to U.S. custody.
The next public milestones will be Zimbardi's response to the indictment, court hearings and any asset-recovery actions. The government's allegations will still need to be tested through the federal court process.
