FBI charges Manhattan man with running $43m crypto Ponzi scheme

The FBI has uncovered a multi-year Ponzi scheme that defrauded investors of $43 million in connection with crypto trading, and one person is now facing wire fraud charges.

Manhattan resident Idin Dalpour is accused by the FBI of orchestrating a multi-million dollar Ponzi scheme involving crypto and allegedly defrauding investors of more than $43 million.

In a May 1 press release, the Department of Justice alleged that Dalpour seduced investors with promises of “large returns” through investments in a Las Vegas hospitality business and crypto trading operation.

These statements were allegedly false, and the FBI says Dalpour ran a classic Ponzi scheme in which he used investors’ funds to pay off previous investors and spent the rest on himself, totaling approximately $1.7 million in gambling losses and his own money. Private school tuition is also included, he adds. children.

“As alleged, Dalpour’s promises were a mirage and he was running a classic Ponzi scheme by paying investors purported returns with other investors’ money.”

US attorney Damian Williams

The charges show that Dalpour has been running a Ponzi scheme since 2020, targeting victims domestically and internationally. The indictment alleges that he fabricated contracts and bank records to persuade investors and offered annual returns of up to 42 percent.

He allegedly diverted investors’ funds for personal use instead of investing in promised ventures. Dalpour also reportedly misled investors by claiming their funds were insured and safe. If convicted, Dalpour faces up to 20 years in prison for wire fraud.

In mid-March, the U.S. Securities and Exchange Commission (SEC) filed criminal charges against 17 individuals involved in a $300 million Ponzi scheme that targeted primarily Latino investors in the United States and two other countries. The scheme allegedly targeted more than 40,000 investors in 10 states and two foreign countries with the promise of significant wealth through “risk-free” and “guaranteed” crypto and currency investments.