A Tennessee man has been indicted for allegedly defrauding millions of dollars through a crypto Ponzi scheme.

Odaily Planet Daily News: Misam M. Abidi, a 47-year-old resident of Tennessee, has been indicted by a federal grand jury for allegedly operating a crypto investment fraud scheme from 2020 to 2024, illegally raising funds from investors through a company called "Star Credit Holdings" and defrauding millions of dollars. The indictment states that the defendant misled investors with false promises, including guaranteeing high returns, claiming to have a large reserve fund to ensure safety, and exaggerating the actual amount of assets under management.

Prosecutors pointed out that the scheme was essentially a classic Ponzi structure: paying returns to early investors with money from new investors, rather than generating profits through legitimate trading. Additionally, the defendant is accused of assisting investors in applying for personal loans and falsifying documents to obtain additional funds.

Investigations show that he misappropriated at least approximately $1.9 million from investor funds for personal and family expenses, while failing to truthfully report the related income. The case involves multiple federal charges, including wire fraud, operating an unlicensed money transmission business, filing false tax returns, and money laundering. If convicted on all counts, the defendant could face a lengthy federal prison sentence. (Decrypt)