Crypto Scandal: Idin Dalpour Accused of $43M Fraud in a Ponzi Scheme Involving Bitcoin (BTC)

• Idin Dalpour has been charged with wire fraud related to an alleged Ponzi scheme that defrauded investors of over $43 million.
• Dalpour was arrested and is set to appear in Manhattan federal court before U.S. Magistrate Judge Barbara Moses.
• The scheme, which targeted investors both in the U.S. and internationally, is alleged to have run from 2022 through April 2024.

Idin Dalpour, a crypto trader, has been indicted for a $43 million Ponzi scheme, defrauding investors with false promises of high returns from a Las Vegas hospitality business and crypto trading.

Dalpour’s Deceptive Promises

U.S. Attorney Damian Williams stated, “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.” Williams further described how Dalpour’s promises turned out to be deceptive, as he allegedly used new investors’ money to pay purported returns to earlier investors, characterizing the operation as a classic Ponzi scheme.

Personal Expenses and False Claims

Instead of investing the funds as promised, Dalpour reportedly used the money for personal expenses, including gambling losses totaling approximately $1.7 million and paying for his children’s private school tuition. In his pitch for a Las Vegas hospitality venture, Dalpour made several misleading claims. He falsely stated that his entity partnered with a management company and a well-known Las Vegas hotel to rent out condos to tourists. Moreover, he claimed that he owned shares in various sports stadiums in Las Vegas and would receive a share of the concession sales from these stadiums when visitors attended events there.

Dalpour’s Admission and Potential Sentence

Dalpour acknowledged the scheme in November 2023 when confronted by a group of victims, stating, “what you already have, you have, you can put me in jail now. Like right now.” The scheme, which targeted investors both in the U.S. and internationally, is alleged to have run from 2022 through April 2024. Dalpour now faces up to 20 years in prison if convicted on the wire fraud charge.

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 skeptical of promises of high returns with little to no risk. As the investigation continues, the crypto community will be watching closely to see the outcome of this high-profile case.