Edward Zimbardi, the alleged operator of a $165 million crypto Ponzi scheme, was arrested in Fiji on August 14 after authorities deported him from the island nation. According to the Atlanta U.S. Attorney's Office, Zimbardi faces 12 counts of wire fraud and 12 counts of money laundering, along with one count of conspiracy to commit money laundering. He appeared before a federal magistrate judge in Los Angeles on Monday, where prosecutors want him held in the custody of the US Marshals Service pending further proceedings in the Northern District of Georgia. U.S. Attorney Theodore S. Hertzberg stated that Zimbardi allegedly "tricked thousands of people to invest in his 'Crypto Program' with false promises of enormous returns," spending the money on risky currency trades and personal expenses before fleeing when his scam collapsed. Prosecutors indicated that Zimbardi could appear in an Atlanta federal court within the next three weeks.
The alleged scheme operated from June 2022 to August 2023 and was billed as an 'opportunity to invest in advertising packages with a guaranteed 25% monthly return'. As reported by federal prosecutors, investigators said the program initially spread through word of mouth before using websites to attract investors. Participants were offered commissions to recruit new investors, a structure authorities described as typical of a Ponzi scheme. Investors were encouraged to pay for their advertising packages by moving cryptocurrency into wallets that Zimbardi secretly controlled. Over 6,000 investors allegedly transferred more than $165 million to these addresses during the operation, with the scheme promising guaranteed monthly returns through purported digital advertising package investments. The indictment's underlying cryptocurrency addresses and complete transaction records have not been released publicly.
According to the indictment, Zimbardi allegedly placed more than $34 million of investor funds into risky foreign currency trades that produced substantial losses, though the Justice Department did not provide an exact loss figure. The charges also accuse him of spending at least $10 million on personal expenses, including luxury vehicles, alimony payments to his former wife, and a house for his son. These figures represent prosecution allegations rather than court findings, and Zimbardi has not entered a publicly reported plea in the Northern District of Georgia. The scheme allegedly collapsed in August 2023, leaving investors unable to recover their funds. Federal authorities said they had been tracking the suspect for more than two years as he traveled around the world before the search eventually led investigators to Fiji.
The Crypto Program allegedly collapsed in August 2023, leaving investors unable to recover their funds. As reported by the Justice Department, Zimbardi later traveled through Hawaii, Fiji and other locations before investigators allege he learned of the FBI investigation and fled to Fiji in July 2025. In May 2026, he canceled plans to attend his son's wedding in Virginia "after suspecting - correctly - that FBI agents would attempt to arrest him there" before Fijian authorities eventually learned of his charges and placed him on a U.S.-bound plane on Friday. The FBI and U.S. Department of State coordinated his return with Fiji's immigration ministry and police, with assistance from the SEC, CFTC, California Department of Financial Protection and Innovation, and other U.S. agencies. FBI agents covertly accompanied Zimbardi on the flight back to the United States, revealing their identities and arresting him when the flight arrived at LAX. An FBI official described the suspect as quiet and "humbled" after realizing he had been captured.
The FBI has opened a dedicated portal for people who invested in The Crypto Program, where potential victims can submit contact details and information about their transactions. According to the FBI, the agency may later request supporting documents for restitution proceedings, though submission does not guarantee repayment. Any restitution would depend on the outcome of the prosecution, verified losses, and recoverable assets. Assistant U.S. Attorney Bethany L. Rupert is prosecuting the case, with the FBI leading the investigation and assistance from federal, state and Fijian authorities. The allegations have not been proven in court, and Zimbardi is presumed innocent unless proven guilty. The case arrives as US crypto fraud losses surge, with the FBI Internet Crime Complaint Center logging 181,565 cryptocurrency complaints in 2025 with reported losses above $11.36 billion, representing a 22% increase over 2024.
