A Tennessee man, Misam M. Abidi, 47, of Nolensville, was indicted on 11 federal counts Friday for allegedly running a cryptocurrency investment fraud that stole millions of dollars from investors across the U.S., the Department of Justice announced. The scheme operated under the name Star Credit Holdings from 2020 to 2024.
Prosecutors claim Abidi lured investors with false promises of guaranteed high returns, a claimed substantial reserve fund, and exaggerated claims about the capital he managed. Instead of legitimate trading, he allegedly paid earlier investors with money from newer ones—a classic Ponzi structure. The indictment also alleges he directed more than $1.9 million of investor funds to himself and family members.
Beyond misappropriating assets, Abidi allegedly helped investors secure personal loans to funnel additional funds into the scheme and submitted a false affidavit claiming an investor’s identity had been stolen to obtain one such loan. He also failed to report income from the operation on his federal tax returns.
The charges include wire fraud, money laundering, operating an unlicensed money-transmitting business, and aiding the preparation of false tax returns. If convicted on all counts, Abidi faces potentially decades in federal prison.
“Ponzi schemes, cryptocurrency scams, and financial fraud can be devastating to individual investors, harmful to financial institutions, and detrimental to the U.S. Treasury,” said U.S. Attorney D. Michael Dunavant, praising federal agencies for their investigation.
The case underscores ongoing federal efforts to crack down on crypto-related financial crimes, with the indictment following recent bipartisan legislative proposals to enhance cryptocurrency theft enforcement coordination.
