FBI uncovers Ponzi Scheme worth $43M involving cryptocurrency and Las Vegas hospitality

FBI Foils $43 Million Ponzi Scheme Involving Crypto and Las Vegas Hospitality


By Harvey Hunter
Updated on:
May 2, 2024 07:57 EDT
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Reading Time: 3 minutes


Idin Dalpour, a resident of New York, has been apprehended by the FBI for orchestrating a Ponzi scheme that defrauded investors of $43 million. The scheme spanned several years and included a Las Vegas hospitality business and a crypto trading operation.
On May 1st, the FBI, in collaboration with a New York court, filed charges against Dalpour, as stated in a press release from the Manhattan District Attorney’s office. According to the press release, Dalpour deceived unsuspecting investors by promising significant returns, which turned out to be a cover-up for a large-scale Ponzi scheme.
The scheme operated from 2020 to April 2024 and targeted both domestic and international investors. Through a company he controlled, Dalpour sought investments in fictitious business ventures, including a Las Vegas hospitality enterprise and a crypto trading enterprise.
How Dalpour Deceived Investors
Dalpour enticed investors with the promise of high annual returns starting at 42%. To create a false sense of security, he provided fabricated insurance and escrow arrangements. U.S. Attorney Damian Williams stated, “These outrageous prospects were supported by forged contracts, falsified bank statements, and fictitious email correspondence, which convinced investors of the ventures’ viability.”
As part of the alleged Las Vegas hospitality enterprise, Dalpour falsely claimed that his “entity” had secured contracts with a Management Company and a well-known Las Vegas hotel. Additionally, he falsified proceeds from entertainment packages for the hotel and visitors to various Las Vegas sports stadiums.
In connection with the Las Vegas Ponzi scheme, Dalpour also misrepresented a crypto trading enterprise that he operated. He claimed to purchase crypto at wholesale prices and sell it at a profit to retail investors. In reality, he diverted investor funds to pay off earlier investors, keeping the difference for himself.
In total, Dalpour amassed over $43 million, which he used to finance personal expenses, including gambling losses of approximately $1.7 million, over $400,000 from Art Direct, and private school tuition for his children.
The scheme unraveled in November 2023 when a group of victims confronted Dalpour and he confessed to his fraudulent activities, including the fake ventures, falsified documents, and misappropriated funds. Aware of the gravity of the situation, Dalpour stated, “What you already have, you have, you can put me in jail now. Like right now.”
The Battle Against Crypto Ponzi Schemes
As the adoption of cryptocurrencies increases, scams, organized crime, and money laundering schemes involving crypto have become more prevalent. Dalpour’s arrest is just one example of the US authorities thwarting cryptocurrency-related Ponzi schemes in the past year.
On March 15th, the US Securities and Exchange Commission (SEC) took legal action against 17 individuals involved in an alleged $300 million Ponzi scheme operating under the name CryptoFX, a cryptocurrency trading platform.
Just days earlier, on March 18th, a New York jury convicted two individuals for promoting the now-defunct fake crypto mining and trading scheme known as IcomTech.
Most recently, on April 4th, Irina Dilkinska, the former head of legal and compliance for the multibillion-dollar OneCoin fraud scheme, received a four-year prison sentence after admitting her involvement in laundering millions of dollars.
Cryptocurrency-related crimes have become a pressing issue, leading jurisdictions worldwide to respond. Education plays a crucial role in protecting those vulnerable to crypto scams.
FBI Assistant Director James Smith, commenting on Dalpour’s arrest, said, “We will continue to diligently investigate and take action against those who exploit innocent individuals for their own financial gain.”