New York Resident Charged in $43 Million Crypto-Related Ponzi Scheme

A New York court and the Federal Bureau of Investigation (FBI) unsealed an indictment against Eden Dalbor.

The 39-year-old New York resident was accused of organizing a sophisticated Ponzi scheme that allegedly defrauded investors out of $43 million.

$43 million Ponzi scheme

According to the IndictmentHe ran the Ponzi scheme from approximately 2020 until April 2024. He targeted investors in the United States and abroad, soliciting investments through an entity he controlled called “Entity-1.”

This entity had interests in two business ventures: a cryptocurrency trading operation and a hospitality establishment in Las Vegas. Dalpour falsely claimed that he purchased cryptocurrency at wholesale prices and sold it at a profit to retail investors, promising them significant returns along with guarantees of safety and insurance for their investments.

He also claimed that Entity-1 had deals with a management company and a major Las Vegas hotel to rent apartments to visitors.

Investors were lured into the scheme by promises of significant returns, with initial rates of 42% per annum announced. Dalbor allegedly provided investors with fabricated contracts, email correspondence, and bank statements to support his false claims about the profitability and legitimacy of the projects.

The indictment shows that Dalbor did not use investors' money as promised. Instead, use the money contributed by later investors to pay their returns to the early participants.

Dalbour reportedly used investor funds to cover personal expenses, including gambling losses totaling about $1.7 million, Art Direct expenses amounting to more than $400,000, and private school fees for his children.

When investors sought to recover their investments, he reportedly provided false explanations, including claims of frozen funds due to hotel servers being hacked and no bank accounts.

Dalpur faces up to 20 years in prison

The indictment also includes details of a confrontation that occurred in November 2023, during which Dalbour reportedly admitted to lying about operating a hospitality business in Las Vegas, misusing investors' funds, and fabricating contracts and banking records.

During this meeting, Dalbour said: “What you already have, you can put me in prison right now, as it is now.”

Dalpur's arrest represents an important step in the investigation, as if convicted, he faces a maximum sentence of 20 years in prison for wire fraud.

The case is being handled by the Southern District of New York Securities and Commodities Fraud Task Force. Dalbour will appear in Manhattan federal court before US Judge Barbara Moses.