July 22, 2024
Crypto

Man charged with wire fraud in crypto-related $43 million Ponzi scheme


Legal
• May 2, 2024, 5:01AM EDT

Published 1 minute earlier on

Idin Dalpour has been charged with wire fraud in connection with an alleged multi-year Ponzi scheme that defrauded investors of $43 million or more, according to an unsealed indictment from the United States Attorney’s Office for the Southern District of New York.

Dalpour was arrested yesterday morning and is scheduled to appear in Manhattan federal court before U.S. Magistrate Judge Barbara Moses later in the day.

“Idin Dalpour told investors that they could reap huge returns by investing through him in a purported Las Vegas hospitality business and a crypto trading operation,” said Damian Williams, U.S. Attorney for the SDNY.

“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,” he continued, adding: “Instead of using investors’ funds as promised, Dalpour spent lavishly on himself, which included racking up gambling losses of approximately $1.7 million and paying for his children’s private school tuition. Now, Dalpour’s gamble has him facing federal criminal charges for his alleged crimes.” 

Dalpour is alleged to have run a Ponzi scheme from roughly 2022 through April of this year, targeting investors located in the U.S. and overseas. Instead of using investors funds as claimed — to support a Las Vegas hospitality enterprise and a crypto trading business — he allegedly misappropriated funds and paid out early investors with contributions from later investors.

In approximately November of last year, Dalpour reportedly stated — when confronted by a group of their Ponzi scheme’s apparent victims — that “what you already have, you have, you can put me in jail now. Like right now.”

Dalpour faces a maximum sentence of 20 years in prison on one count of wire fraud.


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© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Adam is the managing editor for Europe, the Middle East and Africa. He is based in central Europe and was a managing editor and podcast host at the crypto exchange OKX’s former research arm, OKX Insights. Before that, he co-founded BeInCrypto.com, which he elevated into one of the leading crypto media brands at its peak as the editor-in-chief. Earlier, he served as the editor-in-chief at Bitcoinist.com. Before joining the blockchain and crypto industry, he worked for Looper.com, Grunge.com and SVG.com. He tweets via @XBT002 and can be emailed at [email protected].



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