The British Columbia Securities Commission issued a securities fraud warning on March 2nd against CryptoProgram, an unregistered cryptocurrency investment firm. The firm, fronted by US national Ed Zimbardi, claims global offices and offers crypto packages promising a perpetual 25% monthly return.
CryptoProgram is not registered to trade in or advise on securities or derivatives within British Columbia. This lack of registration means the firm operates outside the legal framework designed to protect investors and the integrity of financial markets. The BCSC's warning is the equivalent of a securities fraud alert issued in other jurisdictions, indicating the firm poses a significant risk to the public.
The BCSC identified CryptoProgram as an MLM crypto Ponzi scheme. A Ponzi scheme relies on a constant influx of new investor funds to pay promised returns to earlier investors, rather than generating profits from legitimate business activities. The perpetual 25% monthly return advertised by CryptoProgram is financially unsustainable through any legitimate investment model. Such high, guaranteed returns are a hallmark of fraudulent schemes, often masking a complete lack of real investment.
Ed Zimbardi, a US national, serves as the public face of CryptoProgram, which launched in late 2022. Website traffic analysis shortly after the launch suggested Zimbardi collaborates with unnamed accomplices believed to operate from Dubai. The use of offshore locations often complicates regulatory oversight and makes recovery of funds significantly more challenging for victims. These locations frequently offer less stringent financial regulations, attracting illicit operations.
CryptoProgram actively accepted British Columbia residents as clients, despite its unregistered status. Data from February 2023 showed Canada as the fifth largest source of website traffic for CryptoProgram, accounting for 3% of visitors. This represented a substantial 314% increase month-over-month. The United States led with 51% of traffic, followed by the UK at 17%, UAE at 6% (a significant 87% decrease month-over-month), and Australia at 5%. The scheme's global reach, combined with its focus on high, guaranteed returns, allowed it to draw investors from numerous countries.
By July 9th, 2023, CryptoProgram rebranded itself as Amsys. This tactic is common among fraudulent schemes. Rebranding allows them to attempt to evade detection, shed a negative reputation following regulatory warnings, or simply confuse potential new investors. It makes tracking and enforcement more difficult for authorities and prolongs the scam's lifespan.
The British Columbia Securities Commission urges residents to exercise extreme caution when engaging with firms not registered to trade or advise on securities within the province. Verifying a firm's registration status through official regulatory websites is a critical first step for any potential investor to protect their assets.