Edward Zimbardi, the promoter of the Ponzi scheme “The Crypto Program,” was deported from Fiji to the United States after more than a year on the run, facing 25 criminal charges.

Edward Zimbardi, who promoted an alleged $165 million cryptocurrency Ponzi scheme called “The Crypto Program,” was deported from Fiji to the United States last week after more than a year on the run.

Zimbardi is scheduled to appear in federal court in Los Angeles on Monday to face 12 charges of electronic fraud, 12 charges of money laundering, and one charge of conspiracy to commit money laundering, according to the U.S. Attorney's Office for the Northern District of Georgia. Prosecutors said the government will recommend that Zimbardi remain in custody under U.S. Attorney's Office pending further proceedings.

According to the announcement, from June 2022 to August 2023, Zimbardi promoted this model through videos and websites, allegedly offering advertising packages with guaranteed returns of up to 25% per month. Investors were instructed to fund these packages by transferring crypto assets to wallets secretly controlled by Zimbardi, and thousands of investors transferred a total of over $165 million to those wallets.

Misuse of funds and a series of escapes.

Prosecutors said Zimbardi did not use the funds raised to purchase advertising packages as promised. He is accused of using more than $34 million to bet on the foreign exchange market, thereby incurring significant losses, and using money from later investors to pay earlier investors in a typical Ponzi scheme.

Zimbardi is also accused of spending at least $10 million on personal expenses, including buying a house for his son, luxury cars, and paying alimony to his ex-wife.

Federal prosecutor Theodore S. Hertzberg said that when the scam collapsed, Zimbardi allegedly attempted to evade federal prosecution by fleeing to the other side of the world, and thanks to the cooperation of law enforcement and diplomatic agencies in Fiji and the United States, he was brought back to U.S. territory to stand trial.

Zimbardi was indicted on July 8th, and according to procedural rules, the indictment only contains the charges; he is considered innocent until the government proves the charges in court.

The U.S. Federal Bureau of Investigation (FBI) is now urging individuals who invested in The Crypto Program to provide information as victims, stating that it will contact them later regarding further procedures, including documentation that may be needed for potential reimbursement of losses.