NY Resident Faces Charges Over $43M Ponzi Scheme Involving Cryptocurrency

• A New York resident, Idin Dalpour, has been indicted by a court and the Federal Bureau of Investigation (FBI) for allegedly organizing a Ponzi scheme that defrauded investors of $43 million.
• Dalpour reportedly ran the scheme from 2020 through April 2024, targeting investors in the United States and abroad.
• He is accused of using the funds for personal expenses, including gambling losses and private school tuition for his children.

Idin Dalpour, a New York resident, faces charges for allegedly running a $43 million Ponzi scheme involving cryptocurrency and a Las Vegas hospitality enterprise. If convicted, he could face up to 20 years in prison.

$43 Million Ponzi Scheme

Dalpour is accused of running the Ponzi scheme from approximately 2020 through April 2024, soliciting investments through an entity he controlled, referred to as “Entity-1.” This entity had interests in a cryptocurrency trading operation and a Las Vegas hospitality enterprise. Dalpour allegedly lured investors with promises of substantial returns and assurances of safety and insurance for their investments. However, the indictment outlines that Dalpour did not use investors’ funds as promised, instead using the money contributed by later investors to pay earlier participants their returns.

Personal Use of Investor Funds

According to the indictment, Dalpour reportedly used investor funds for personal expenses, including gambling losses totaling approximately $1.7 million, expenditures from Art Direct amounting to over $400,000, and private school tuition for his children. When investors sought to recover their investments, he reportedly provided false explanations, including claims of frozen funds due to a hack of the Hotel’s servers and non-existent bank accounts.

Dalpour Faces Upto 20 Years in Prison

If convicted, Dalpour faces a maximum sentence of 20 years in prison for wire fraud. The Securities and Commodities Fraud Task Force of the Southern District of New York is handling the case. Dalpour will appear in Manhattan federal court before U.S. Magistrate Judge Barbara Moses.

Conclusion

This case serves as a stark reminder of the risks associated with cryptocurrency investments and the importance of due diligence. Investors are urged to be cautious and thoroughly research any investment opportunities. As the investigation continues, the potential conviction of Dalpour could serve as a significant deterrent for similar fraudulent schemes in the future.