The Alberta Securities Commission (ASC) issued a securities fraud warning against CryptoProgram on July 10th, adding the entity to its Investment Caution List. This action targeted the alleged multilevel marketing cryptocurrency Ponzi scheme, which US resident Edward Anthony Zimbardi reportedly operates.
The ASC's Investment Caution List serves as a public alert system. It identifies firms not registered to conduct investment business in Alberta that appear to be engaging in activities requiring registration under provincial securities laws, or that may simply be investment scams. The designation is equivalent to a formal securities fraud warning in other jurisdictions, advising the public against unregistered and potentially fraudulent investment opportunities.
CryptoProgram's business model promised high, consistent returns to investors, a common hallmark of Ponzi schemes. Funds from new investors were reportedly used to pay earlier investors, rather than generating profits from legitimate business operations. The scheme heavily relied on recruitment, incentivizing participants to bring in more capital through multi-level commissions.
Before the Alberta action, CryptoProgram had already drawn regulatory scrutiny. Securities fraud warnings came from British Columbia and California in recent months, alerting investors to the unregistered nature of its offerings. These alerts typically precede or accompany enforcement actions against entities operating outside of established financial regulations.
Following these initial warnings, CryptoProgram reportedly rebranded as Amsys in late June. This tactic is often employed by fraudulent operations to evade detection and continue soliciting new funds from unsuspecting investors. Despite this rebranding, the underlying structure and alleged operator, Edward Anthony Zimbardi, remained the same.
Zimbardi, the purported operator, recently announced he was 'taking a break' from the CryptoProgram/Amsys operations. Such announcements can signal an impending collapse of the scheme or an attempt by the operator to distance themselves as regulatory pressure mounts. Tracing funds in crypto-based schemes like Amsys presents significant challenges for regulators due to the pseudonymous nature of transactions and cross-border operations.
Securities regulators across North America have stepped up efforts to combat the proliferation of unregistered cryptocurrency investment platforms. These schemes frequently target retail investors with promises of quick wealth, often through complex and opaque investment vehicles that lack transparency and oversight. The absence of registration means investors have no recourse through standard regulatory channels if their funds are lost.
Investors who have engaged with CryptoProgram or Amsys should contact the Alberta Securities Commission or their local securities regulator to report their experience.