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FBI gets alleged $165 million crypto Ponzi scheme mastermind back after year-long Fiji escape
Prosecutors say Edward Zimbardi diverted investor funds into forex bets, luxury vehicles and payments to earlier investors.
A federal grand jury in Georgia indicted Zimbardi on July 8 on 12 counts of wire fraud, 12 counts of money laundering, and one count of conspiracy to commit money laundering, the US Attorney’s Office
Prosecutors allege Zimbardi operated The Crypto Program from June 2022 through August 2023, selling advertising packages that promised investors guaranteed monthly returns of 25%.
Rather than using the money as advertised, Zimbardi allegedly directed more than $34 million into high-risk foreign currency trading, used funds from newer investors to pay earlier participants, and spent at least $10 million on personal expenses.
The payment structure forms the basis of the government’s Ponzi scheme allegation, with prosecutors claiming returns paid to earlier participants were funded by money from later investors rather than profits generated by the business.
The Justice Department said Zimbardi fled to Fiji in July 2025 after learning that the FBI was investigating him. Fijian authorities deported him to the US on Aug. 14, 2026, in coordination with the FBI and State Department.
Zimbardi was scheduled to appear before a federal magistrate judge in Los Angeles on Aug. 17, with prosecutors seeking to keep him detained pending further proceedings. The Justice Department had not disclosed the outcome of that hearing in its latest statement.
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China has begun restricting overseas travel for top artificial intelligence professionals working at private firms, including Alibaba Group Holding and DeepSeek.
The move signals an escalation in Beijing’s efforts to safeguard critical technology and strengthen its position in the global AI race against the US.
Government agencies have started imposing travel restrictions on individuals involved in advanced AI development who are considered strategically important to the country.
As cited in a Bloomberg report, people familiar with the matter said the restrictions apply to a range of AI professionals, including startup founders, researchers, and senior executives.
China has long maintained travel restrictions on individuals working in strategically important sectors, including university researchers, nuclear scientists, and executives at state-owned enterprises.
The Ministry of Industry and Information Technology did not respond to a faxed request for comment.
Representatives for DeepSeek and Alibaba also did not respond to requests for comment.
People familiar with the matter said the latest travel restrictions are not necessarily directly linked to the Manus case.
However, preventing technology leaks remains a major policy objective for Chinese authorities.
Some AI professionals in China’s private sector had already been required to report overseas travel plans to authorities.
In many cases, though, prior approval was not always necessary before travelling abroad.
Last year, the Wall Street Journal reported that Chinese authorities advised leading AI founders and researchers to avoid visiting the US, although the guidance stopped short of a formal ban.
The tighter restrictions may ultimately force some AI engineers with international ambitions to decide whether to remain in China or pursue opportunities abroad earlier in their careers.
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