US Authorities Charge Man in Connection With $43 Million ‘Classic’ Ponzi Scheme

U.S. authorities have charged a man they accuse of operating a Ponzi scheme, which purported to invest in a cryptocurrency trading enterprise. The operator of the scheme is accused of defrauding investors of at least $43 million. FBI Assistant Director James Smith said the actions of Idin Dalpour not only “sever the trust of clients,” but also undermine the credibility of prospective advisers.

Idin Dalpour Ran ‘a Classic Ponzi Scheme’

U.S. Attorney Damian Williams and James Smith, assistant director of the Federal Bureau of Investigation, revealed on May 1 that the U.S. government has charged the alleged operator of a crypto-related Ponzi scheme with wire fraud. According to U.S. authorities, Idin Dalpour, who ran the Ponzi scheme from 2020 to April 2024, defrauded investors of at least $43 million.

A statement issued by the Justice Department said Dalpour, 39, faces a maximum sentence of 20 years in prison if convicted. The statement also quotes Williams detailing how Dalpour, who is believed to have lost $1.7 million of investors’ funds in gambling, orchestrated the scam, which ran for almost four years.

“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. 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,” the U.S. Attorney said.

Instead of investing the funds as promised, Dalpour is accused of using investors’ money to fund his extravagant lifestyle. This included paying for his children’s tuition at a private school and maintaining his gambling habit. He is also accused of using investors’ funds to purchase merchandise worth over $400,000 from Art Direct.

Meanwhile, Smith expressed regret over how Dalpour’s actions not only “sever the trust of clients” but also undermine the credibility of potential advisors. Smith added that Dalpour’s arrest should serve as a warning to potential criminals that U.S. authorities will not allow the actions of a few to harm many.

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