A Tennessee man, Misam M. Abidi, 47, has been indicted on 11 federal charges for allegedly running a cryptocurrency Ponzi scheme through his firm Star Credit Holdings from 2020 to 2024. The indictment, announced by the Justice Department, accuses Abidi of luring investors with false promises of guaranteed high returns and a substantial reserve fund, while he actually had far less capital under management. Instead of generating legitimate trading profits, Abidi allegedly used new investor funds to pay earlier investors, a classic Ponzi scheme structure. He also helped investors secure personal loans to funnel more money into the firm and falsified an affidavit claiming identity theft to obtain a loan. Prosecutors allege he diverted over $1.9 million to himself and family members and failed to report the income on tax returns. Charges include wire fraud, operating an unlicensed money transmitting business, aiding in false tax returns, and money laundering. If convicted, Abidi faces decades in federal prison. U.S. Attorney D. Michael Dunavant emphasized the devastating impact of such fraud and vowed accountability.

Key facts

• Abidi lured investors with false promises of guaranteed high returns and a large reserve fund.
• He ran a Ponzi scheme, paying old investors with new investor funds.
• Over $1.9 million was diverted to himself and family members.
• Charges include wire fraud, money laundering, and filing false tax returns.
• If convicted on all 11 counts, he faces decades in federal prison.