FBI Arrests New York Resident for $43 Million Ponzi Scheme Involving Cryptocurrency and Hospitality Ventures

FBI Arrests New York Resident for $43 Million Ponzi Scheme Involving Cryptocurrency and Hospitality Ventures

The FBI has apprehended a New York resident on charges of orchestrating a sophisticated Ponzi scheme, which allegedly defrauded investors of at least $43 million over several years. Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, brought forth accusations against Idin Dalpour for deceptive investment practices involving a Las Vegas hospitality venture and a cryptocurrency trading operation.

Dalpour purportedly enticed investors with promises of significant returns, but these pledges masked a vast Ponzi scheme, according to the FBI’s indictment. Under the guise of a cryptocurrency trading enterprise, he allegedly misrepresented his activities, claiming to purchase crypto at wholesale prices and sell them to retail investors at a profit.

Investors were drawn in by the prospect of high annual returns, along with assurances of the security of their investments through purported insurance and escrow arrangements. However, it’s alleged that Dalpour fabricated contracts, falsified bank statements, and created fictitious email exchanges to deceive investors about the legitimacy of his ventures.

Instead of investing funds as promised, the FBI claims that Dalpour diverted them to pay off earlier investors, cover personal expenses—including substantial gambling losses—and finance private school tuition for his children.

James Smith, the FBI’s assistant director, emphasized the agency’s commitment to upholding economic justice and preventing individuals from profiting at the expense of others. He remarked, “Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others.”

Dalpour’s scheme began to unravel when a group of victims confronted him in November 2023. At that point, he reportedly confessed to his actions, acknowledging their seriousness and indicating his willingness to face consequences.

This arrest is part of a broader crackdown by U.S. authorities on Ponzi schemes involving cryptocurrencies. In recent months, there have been several other arrests and convictions related to similar fraudulent activities in the crypto space, underscoring regulators’ efforts to protect investors from such scams.