- The U.S. Department of Justice (DOJ) has indicted a New York man, Idin Dalpour, for allegedly running a multi-year Ponzi scheme involving cryptocurrency trading and hospitality businesses.
- Dalpour is accused of defrauding investors of at least $43 million between 2020 to April 2024.
- If found guilty, Dalpour could face a maximum sentence of 20 years in prison.
A New York man faces charges for allegedly running a Ponzi scheme involving cryptocurrency trading, defrauding investors of millions over several years.
Details of the Alleged Ponzi Scheme
According to the indictment, 39-year-old Idin Dalpour lured victims into funding his hospitality enterprise with a promise of lucrative returns starting at 42% interest per year. He assured investors that their money was insured. Dalpour is also said to have falsely claimed that he bought cryptocurrencies wholesale and sold them at a profit to retail investors.
Use of Investors’ Funds
It is alleged that Dalpour did not actually use the investors’ funds as promised. Instead, he paid earlier investors their supposed returns using funds from later investors. The DOJ says Dalpour eventually defrauded investors of at least $43 million over the course of the scheme that ran approximately between 2020 to April 2024.
Consequences of the Alleged Fraud
US Attorney Damian Williams stated, “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. Instead of using investors’ funds as promised, Dalpour spent lavishly on himself, which included racking up gambling losses of approximately $1.7 million and paying for his children’s private school tuition. Now, Dalpour’s gamble has him facing federal criminal charges for his alleged crimes.”
Conclusion
Dalpour was arrested on Wednesday. If found guilty, he faces a maximum sentence of 20 years in prison. This case serves as a reminder for investors to exercise due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
