'The Crypto Program' promoter deported from Fiji over alleged $165 million Ponzi scheme

Edward Zimbardi, the promoter of an alleged $165 million cryptocurrency Ponzi scheme dubbed "The Crypto Program," was deported from Fiji to the U.S. last week after spending more than a year on the run. 

Zimbardi was scheduled to appear in federal court in Los Angeles on Monday to face 12 counts of wire fraud, 12 counts of money laundering, and one count of money laundering conspiracy, the U.S. Attorney's Office for the Northern District of Georgia said in a statement.

Prosecutors said the government would seek his detention in the U.S. Marshals Service custody pending further proceedings. 

According to the statement, Zimbardi promoted the scheme between June 2022 and August 2023 through videos and websites that allegedly offered advertising packages with a guaranteed 25% monthly return. 

Investors were directed to fund the packages by transferring crypto to wallets Zimbardi secretly controlled, with thousands of investors sending more than $165 million to those wallets.

Prosecutors said Zimbardi did not use the funds to purchase advertising packages. He allegedly put more than $34 million into foreign currency bets, losing substantial amounts, while using money from later investors to pay earlier investors. He also allegedly spent at least $10 million on personal expenses, including a house for his son, luxury vehicles, and alimony payments to his ex-wife.

"When his scam imploded, he allegedly tried to evade federal prosecution by fleeing to the other side of the world," U.S. Attorney Theodore S. Hertzberg said. "Thanks to law enforcement and diplomatic authorities in Fiji and the United States, Zimbardi is back on American soil and will face trial."

Zimbardi was indicted on July 8. The indictment contains charges only, and he is presumed innocent unless the government proves the allegations at trial.

The FBI urged individuals who invested in The Crypto Program to provide victim information. The agency said it would contact victims later about further proceedings, including documentation that may be required for potential restitution.