A 59-year-old Georgia man accused of running a $165 million cryptocurrency Ponzi scheme appeared in a Los Angeles federal court on Monday after being deported from Fiji to face charges.
Federal prosecutors allege Edward Zimbardi of Flowery Branch, Georgia, operated ‘The Crypto Program’ between June 2022 and August 2023, promising investors 25% monthly returns before the operation collapsed. The scheme allegedly involved thousands of victims, with funds diverted to risky currency trades, early investor payouts, and personal expenses, including a house and luxury vehicles.
Zimbardi was arrested in Fiji and extradited to the U.S. after attempting to evade prosecution. U.S. Attorney Theodore S. Hertzberg described Ponzi schemers as “parasites” in a Department of Justice announcement, stating that Zimbardi allegedly tricked investors with false promises. FBI Atlanta Special Agent in Charge Marlo Graham noted the scheme preyed on unsuspecting individuals, and the FBI is seeking victim information to aid the investigation.
Prosecutors claim Zimbardi promoted the program through videos and websites, instructing investors to send cryptocurrency to digital wallets. The alleged returns were unsustainable, with funds allegedly used to sustain the scheme rather than generate legitimate profits. When the operation unraveled, Zimbardi fled overseas before being located and returned to U.S. custody.
Zimbardi faces charges of wire fraud and money laundering, with a federal judge set to preside over the case in Los Angeles. His attorney could not be reached for comment. The DOJ and FBI continue to investigate the scope of the scheme and seek additional victims to come forward.
The case highlights the growing risks of cryptocurrency investment scams, which have proliferated amid the digital asset boom. Authorities urge caution for investors lured by high-return promises, emphasizing that such schemes often collapse when new funds dry up.