US Charges Alleged $165M Crypto Ponzi Mastermind After Fiji Deportation

Fiji authorities expelled Edward Zimbardi, who U.S. prosecutors say orchestrated a crypto Ponzi that amassed ↑ $165M from thousands of investors. Within weeks, the scheme unraveled, losing ↓ $34M on speculative currency trades while Zimbardi siphoned at least $10 million for personal use.

Crypto Ponzi Scheme Details

The indictment, filed in the Southern District of New York, alleges fraudulent misrepresentations about blockchain yields and promises of guaranteed returns. A

“brazen exploitation of crypto hype”

remark from the U.S. Attorney’s office underscores the gravity. Zimbardi’s alleged activities spanned multiple jurisdictions, exploiting lax oversight in offshore crypto exchanges. The case joins a growing docket of high‑profile digital‑asset frauds, highlighted in recent Reuters coverage. Defense counsel has yet to comment, but the prosecution is poised to seek forfeiture of assets and a lengthy prison term.

Reported by: Lyra Valance

Digital Assets & Web3 Insider