Idin Dalpour, a citizen of New York, has been detained by the FBI for defrauding investors of $43 million in a multi-year Ponzi scheme that included a Las Vegas hospitality business and crypto trading operation.
TakeAway Points:
- The FBI arrested New York resident Idin Dalpour for defrauding investors of $43 million in a multi-year Ponzi scheme that included a Las Vegas hospitality business and crypto trading operation.
- The report stated that Dalpour lured investors in with the prospect of handsome yearly profits as high as 42%. To further bolster this and give their money a false sense of security, escrow agreements and fake insurance were added.
- The US Securities and Exchange Commission (SEC) filed lawsuits against 17 people on March 15th, alleging they were part of a $300 million Ponzi scam that was run under the CryptoFX bitcoin trading platform.
Idin Dalpour was Arrested for Fraudulent Activities
The Federal Bureau of Investigation (FBI) and a New York court filed charges against Dalpour on May 1.
The Manhattan District Attorney’s Office released a press release alleging that Dalpour deceived gullible people into investing with him by offering huge profits, which turned out to be a front for a massive Ponzi scam.
The scheme, which catered to both domestic and foreign investors, ran from 2020 until April 2024.
Dalpour sought funding from imaginary companies using a company he controlled. Among these endeavours were businesses involved in hospitality in Las Vegas and cryptocurrency trading.
Dalpour’s Fraud Scheme
The report stated that Dalpour lured investors in with the prospect of handsome yearly profits as high as 42%. To further bolster this and give their money a false sense of security, escrow agreements and fake insurance were added.
“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.” Damian Williams, US Attorney, said.
His proposals were supported by forged bank statements, contracts, and email exchanges, which were meant to fool investors into thinking the business ideas would succeed.
Dalpour made up the fact that his “entity” had an agreement with a reputable Las Vegas hotel and a management company as part of the alleged hospitality venture in Las Vegas.
Dalpour is accused of fabricating revenue from entertainment packages for hotel guests and guests of several sports stadiums in Las Vegas.
In relation to the Ponzi scam in Las Vegas, Dalpour also made false representations about a purported cryptocurrency trading business that he ran.
He stated that he bought cryptocurrencies at wholesale as part of the cryptocurrency trading plan. He then most likely made a profit and sold it to individual investors.
In actuality, Dalpour kept the difference after the investor funds were diverted to pay earlier investors’ payouts.
He amassed more than $43 million in total, which he used to pay for personal needs. These included losses from gambling of over $1.7 million, more than $400,000 from Art Direct, and his children’s tuition at private schools.
When a group of victims confronted Dalpour in November 2023, the plan crumbled. He acknowledged that he had fabricated documents, misappropriated money, and engaged in fraudulent endeavours.
Dalpour realised how serious the situation was. “What you already have, you have, you can throw me in jail now,” he said. as at the present moment.
Combating Cryptocurrency Ponzi Schemes
The use of cryptocurrency in money laundering, organised crime, and scam operations is growing as its acceptance grows.
Dalpour’s arrest is only one instance in a long line of Ponzi schemes involving cryptocurrencies that US authorities have shut down in the past 12 months.
The US Securities and Exchange Commission (SEC) filed lawsuits against 17 people on March 15th, alleging they were part of a $300 million Ponzi scam that was run under the CryptoFX bitcoin trading platform.
A New York jury found guilty on March 18, a few days earlier, of two individuals who had pushed the now-defunct IcomTech fraudulent cryptocurrency mining and trading operation.
The most recent incident occurred on April 4, when Irina Dilkinska, the former head of legal and compliance for the massive OneCoin fraud scam, was sentenced to four years in prison after confessing to her involvement in the millions of dollars’ laundering.
Jurisdictions all across the world have responded to the emerging problem of cryptocurrency-based crime. The best defence against cryptocurrency scammers is education.
“Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others.” James Smith, FBI Assistant Director, representing Dalpour’s arrest, said.
