An American man accused of using a cryptocurrency Ponzi scheme to defraud millions of dollars is charged with 11 federal offenses.

Deep Tide TechFlow News, June 14 — According to Decrypt, the U.S. Department of Justice announced that a man from Tennessee has been formally charged by federal prosecutors with 11 counts for allegedly operating a cryptocurrency investment scam through his control of Star Credit Holdings from 2020 to 2024.

According to the indictment, the suspect lured investors by promising stable high returns, using the funds from new investors to pay returns to early investors, suspected of employing a typical Ponzi scheme operation, accumulating millions of dollars in fraud.

Prosecutors also allege that the suspect diverted over $1.9 million of investment funds for personal use, including expenses related to himself and family members, rather than for the investment activities he claimed to investors.

Currently, the suspect faces 11 federal charges including wire fraud, money laundering, and submitting false tax returns. The U.S. Department of Justice stated that if convicted on these charges, he could face decades of federal imprisonment.

In recent years, U.S. regulatory and law enforcement agencies have continued to intensify efforts against cryptocurrency fraud cases, with the number of cases involving false investment promises, Ponzi schemes, and illegal fundraising continuing to rise.