⏱ 2 min read
Misam M. Abidi, a 47-year-old middle Tennessee man, has been indicted for running a cryptocurrency Ponzi scheme that defrauded millions of dollars from investors across the country. The scheme, which operated from 2020 to 2024, was based in Shelby County, where Abidi resided. Abidi allegedly made false promises of high returns to convince investors to put their money into his cryptocurrency investment firm, Star Credit Holdings. He claimed to have a significant reserve fund and more capital under management than he actually did, and provided investors with fake statements and returns.
Abidi’s scheme involved helping investors take out loans in their names to invest more money with Star Credit Holdings. He even falsified an affidavit stating that an investor’s identity had been stolen to take out a loan. Abidi diverted over $1,900,000 of investor funds to himself and his family, and failed to report income from his business on his tax returns.
The indictment alleges 11 counts of crimes, including wire fraud, operating an unlicensed money transmitting business, aiding and assisting in the preparation of false tax returns, and money laundering. If convicted, Abidi faces up to 20 years in prison for each count of wire fraud.
The investigation and indictment are a result of the efforts of federal law enforcement agencies, including the FBI. The case highlights the growing concern of cryptocurrency-based Ponzi schemes and the importance of investor vigilance.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Tennessee
- Location: TN
- Source: DOJ Press Release
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