Tennessee Man Charged in $1.9M Crypto Ponzi Scheme Case

The US Department of Justice (DOJ) has charged Misam Abidi, 47, of Nolensville, Tennessee, with running an alleged crypto Ponzi scheme through Star Credit Holdings between 2020 and 2024. Prosecutors say the scheme misused investor funds and used misleading claims about guaranteed returns, reserves, and assets under management. In an 11-count indictment filed in federal court, prosecutors allege Abidi diverted more than $1.9 million to himself and family members. The DOJ describes a Ponzi-style flow where money from newer investors was used to pay earlier participants and for personal expenses, rather than for legitimate trading. The indictment also alleges Abidi helped investors obtain personal loans, including submitting false information in connection with at least one loan application. Additional counts relate to false tax return preparation, with claims that income tied to the crypto operation was not properly reported. Charges listed by the DOJ include wire fraud, money laundering, operating an unlicensed money-transmitting business, and false tax return counts. No trial date was announced. If convicted on all counts, Abidi could face decades in federal prison. For crypto traders, the case highlights ongoing enforcement risk around “guaranteed returns” products and off-market investment promises tied to crypto.