Tennessee Man Indicted in $1.9M Crypto Ponzi Case

Misam M. Abidi, 47, of Nolensville, Tennessee, was indicted on 11 federal counts after prosecutors say he ran Star Credit Holdings as a cryptocurrency Ponzi scheme from 2020 through 2024. The indictment was filed in the U.S. District Court for the Western District of Tennessee and lists charges including wire fraud, operating an unlicensed money transmitting business, money laundering and aiding in the preparation of false tax returns.

According to the Justice Department, Abidi solicited investors across the country with promises of guaranteed high returns, claims of a substantial reserve fund and statements that he managed far more capital than he actually controlled. Prosecutors allege he paid earlier investors with funds from newer investors rather than with profits from legitimate trading.

The filing alleges Abidi diverted more than $1.9 million to himself and family members. It also charges that he arranged personal loans in investors’ names to funnel additional money into Star Credit Holdings and falsified at least one affidavit claiming an investor’s identity had been stolen to obtain a loan. Prosecutors further allege he failed to report the income from the operation on his federal tax returns.

U.S. Attorney D. Michael Dunavant described the conduct in a statement: “Ponzi schemes, cryptocurrency scams, and financial fraud can be devastating to individual investors, harmful to financial institutions, and detrimental to the U.S. Treasury.” If convicted on all counts, Abidi faces potentially decades in federal prison.

The Justice Department announced the indictment Friday. The filing begins the formal criminal process; future proceedings, including arraignment and any trial dates, will proceed in federal court.