Alleged $165M Crypto Ponzi Scheme Operator Deported To US

By Arslan Tabish | Edited By Ammar Raza,August 18, 2026, 11:02 AM

Edward Zimbardi, accused of operating a $165 million crypto Ponzi scheme, returned to the United States on Aug. 14 after Fiji deported him. Federal prosecutors allege thousands of investors sent cryptocurrency into an investment program that promised guaranteed monthly returns.

According to a report, Zimbardi, 59, of Flowery Branch, Georgia, faces 12 counts of wire fraud. He also faces 12 money laundering charges and one count of conspiracy to commit money laundering.

A federal grand jury in the Northern District of Georgia returned the indictment on July 8. The charges remain allegations, and Zimbardi is presumed innocent unless proven guilty beyond a reasonable doubt.

Also Read: Coinbase Scam Actor Tied to $300M Sends ETH to Tornado Cash 

How the Alleged Crypto Ponzi Scheme Operated

According to the Justice Department, Zimbardi organized and advertised an investment scheme known as the Crypto Program. This scheme was reportedly operational from June 2022 through August 2023.

Promotional websites and videos presented the program as a way to purchase digital advertising packages. Investors were allegedly promised guaranteed monthly returns of 25%.

Investors were supposed to send their cryptocurrency into digital wallets. According to prosecutors, Zimbardi was in control of those addresses secretly.

Thousands of investors allegedly wired in excess of $165 million into the wallets. However, authorities say that the promised advertising packages were never purchased.

Instead, money sent by later investors was allegedly used to pay out earlier investors. Prosecutors described the scheme as a crypto Ponzi scheme.

Transaction logs and wallet addresses have not been released by the Justice Department so far. Neither the type of digital assets involved in the transactions nor the amount of cryptocurrency seized by authorities has been announced.

More Than $34M Allegedly Entered Currency Trades

The prosecutors claim that Zimbardi has invested more than $34 million in speculative trading with foreign currencies. This has generated considerable losses, as stated by the U.S. Department of Justice.

The total amount of losses incurred due to trading was not revealed by officials. It is also claimed in the indictment that Zimbardi has invested at least $10 million for his personal needs. The expenditure included luxurious cars, buying property for his son, and paying alimony to his ex-wife.

However, Zimbardi’s plea for the Georgia case was not publicly made available yet. The crypto Ponzi scheme allegedly run by Zimbardi fell apart in August 2023.

Fiji Deports Zimbardi After More Than a Year

It was further reported that Zimbardi then made trips to Hawaii, Fiji, and other places. According to the investigations, he became aware of the FBI’s probe into the scheme and absconded to Fiji in July 2025.

He stayed in Fiji for more than a year. Prosecutors further say that Zimbardi had also cancelled plans to visit his son’s wedding in Virginia in May 2026, saying he feared FBI arrest at that place.

Zimbardi was deported from Fiji by the Fijian government on August 14 when they came to know about the charges against him. The investigation for the alleged crypto Ponzi scheme also got assistance from the SEC, CFTC, and several state agencies.

A special portal for investors of the Crypto Program has been created by the FBI. Information about transactions and contact details of the investors can be provided through this portal.

Further documentation related to the restitution process may be required by the FBI from the investors. Submission of such information does not guarantee any payment.

Repayment, if any, would depend on the criminal case, loss verification, and recovery of assets. The prosecution of the case is being done by Assistant US Attorney Bethany L. Rupert. The FBI is investigating the case.

Also Read: Austria’s FMA Fines Bitpanda €70K Over MiCA Violations