Tennessee Man Charged in $1.9M Star Credit Ponzi—Allegedly Paid Old Investors With New Investors' Cash

A Tennessee man has been indicted on federal charges for allegedly running a cryptocurrency investment fraud that defrauded investors of more than $1.9 million between 2020 and 2024, the Justice Department announced Friday.

Misam M. Abidi, 47, of Nolensville, faces an 11-count federal indictment accusing him of operating Star Credit Holdings as a fraudulent crypto investment firm. Prosecutors allege Abidi solicited investors by guaranteeing high rates of return, claiming he maintained a substantial reserve fund to safeguard principal, and asserting he managed capital well beyond what he actually controlled. Rather than producing returns through trading, Abidi allegedly paid earlier investors using money contributed by newer ones, the structure prosecutors described as a classic Ponzi scheme. He also allegedly assisted investors in obtaining personal loans in their own names to channel additional money into the firm and falsified at least one affidavit claiming an investor's identity had been stolen in order to secure such a loan.

According to prosecutors, Abidi diverted more than $1.9 million of investor funds to himself and family members and failed to report income from the operation on his federal tax returns. The indictment includes charges of wire fraud, operating an unlicensed money transmitting business, aiding in the preparation of false tax returns, and money laundering. A conviction on all counts could result in 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 for the Western District of Tennessee. "We commend our federal agency partners for their outstanding investigation in this egregious case. Wherever fraud occurs in the Western District of Tennessee, this office will be prepared to hold offenders accountable."