Tennessee Man Charged with Suspected Crypto Ponzi Scheme That Stealed Millions From Investors

A Tennessee man has been indicted on federal charges for allegedly defrauding investors across the country out of millions of dollars, the Justice Department said. he announced on Friday.

Misam M. Abidi, 47, of Nolensville, Tennessee, faces an 11-count indictment accusing him of running a fraudulent cryptocurrency company called Star Credit Holdings between 2020 and 2024.

Prosecutors say Abidi used false promises to lure investors. Among the falsehoods he allegedly told: guarantees of high returns, claims that he maintained a large fund to protect investors, and claims that he managed more than he managed.

Instead of making a profit through legitimate trading, Abidi allegedly pays existing investors the money contributed by new ones – the hallmark of a classic Ponzi scheme. He also said that he helped investors get loans in their own names to raise money for the company, and he falsified one piece of evidence alleging that he had been embezzled to get the loan.

Prosecutors say Abidi gave more than $1.9 million to himself and his family, and also failed to report the money he earned from the project on his tax returns.

“Ponzi schemes, cryptocurrency fraud, and money fraud can be harmful to investors, harm financial institutions, and damage the US Treasury,” said US Attorney D. Michael Dunavant, in a statement. “We commend our federal agencies for their outstanding investigation into this horrific crime. Wherever fraud occurs in west Tennessee, this office will be ready to hold the perpetrators accountable.”

The charges include wire fraud, wire fraud, assisting in the preparation of false tax returns, and money laundering. If convicted on all charges, Abidi could face decades in federal prison.