Tennessee Gubernatorial Candidate Indicted for $1.9M Cryptocurrency Ponzi Scheme

According to U.S. Attorney D. Michael Dunavant, Misam M. Abidi, a 47-year-old independent gubernatorial candidate in Tennessee, was indicted on eleven federal counts for allegedly operating a cryptocurrency Ponzi scheme that diverted over $1.9M in investor funds to himself and his family.

Abidi allegedly solicited investors in Star Credit Holdings with claims of guaranteed returns and inflated representations of capital under management, providing fictitious account statements and paying supposed trading profits using other investors' principal. He faces three counts of wire fraud (up to 20 years each), three counts of money laundering (up to 10 years each), two counts of operating an unlicensed money transmitting business, and three counts of aiding in preparation of false tax returns.