{"investigation":{"slug":"star-credit-holdings","entity_name":"Star Credit Holdings","trust_score":2,"severity_base":null,"score_modifier":0,"confidence":0.95,"status":"draft","content_type":"investigation","summary":"Star Credit Holdings is a cryptocurrency investment firm operated by Misam M. Abidi of Nolensville, Tennessee, that allegedly functioned as a Ponzi scheme from 2020 to 2024. On June 12, 2026, a federal grand jury in the Western District of Tennessee returned an 11-count indictment against Abidi for wire fraud, unlicensed money transmission, false tax return preparation, and money laundering, with allegations that he diverted over $1.9 million in investor funds to himself and family members. State regulators had previously taken action in May 2024, obtaining a temporary injunction freezing assets tied to Abidi, his wife Anisha Abidi, co-defendant Ali Raza Galani, and related entities including NumisMe LLC and Satori Credit Solutions LLC, with total alleged investor losses across 17 states exceeding $6.3 million.","sections":[{"content":"On June 12, 2026, a federal grand jury in the Western District of Tennessee returned an 11-count indictment against Misam M. Abidi, 47, of Nolensville, Tennessee. The indictment was announced jointly by U.S. Attorney D. Michael Dunavant and investigators from IRS Criminal Investigation, the FBI, and the U.S. Secret Service. Prosecution is being handled by Assistant U.S. Attorney William Carey Bateman III. The charges include three counts of wire fraud (maximum 20 years per count), two counts of operating an unlicensed money transmitting business (maximum 5 years per count), three counts of aiding and assisting in the preparation of false tax returns (maximum 3 years per count), and three counts of money laundering (maximum 10 years per count). If convicted on all counts, Abidi would face a combined maximum sentence exceeding 100 years in federal prison. Abidi is presumed innocent unless proven guilty beyond a reasonable doubt.","heading":"Federal Indictment (June 2026)","sources":[{"url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme","name":"DOJ Western District of Tennessee: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1},{"url":"https://www.irs.gov/compliance/criminal-investigation/middle-tennessee-man-indicted-for-crypto-ponzi-scheme","name":"IRS Criminal Investigation: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1}],"severity":"critical"},{"content":"According to the federal indictment, Abidi allegedly solicited investors into Star Credit Holdings by making three categories of false representations: (1) guaranteed high rates of return on cryptocurrency investments, (2) claims that he maintained a significant reserve fund sufficient to make investors whole if losses occurred, and (3) materially inflated representations about the total amount of capital under his management. Rather than generating returns through legitimate cryptocurrency trading, Abidi allegedly provided investors with fictitious account statements showing fabricated profits and paid purported trading returns using the principal contributed by other investors — the hallmark of a Ponzi structure. The indictment further alleges that Abidi assisted investors in obtaining personal loans in their own names to increase the volume of capital funneled into Star Credit Holdings, and that he falsified at least one affidavit falsely claiming that an investor's identity had been stolen in order to facilitate a loan application. Across the period 2020 to 2024, Abidi allegedly diverted over $1,900,000 of investor funds to himself and family members. He is also alleged to have failed to report Star Credit Holdings income on his federal tax returns.","heading":"Alleged Scheme Mechanics","sources":[{"url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme","name":"DOJ Western District of Tennessee: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1},{"url":"https://www.irs.gov/compliance/criminal-investigation/middle-tennessee-man-indicted-for-crypto-ponzi-scheme","name":"IRS Criminal Investigation: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1},{"url":"https://www.cryptotimes.io/2026/06/12/millions-lost-tennessee-crypto-operator-faces-federal-charges/","name":"Crypto Times: Millions Lost — Tennessee Crypto Operator Faces Federal Charges","type":"news_article","credibility":2}],"severity":"critical"},{"content":"More than two years before the federal indictment, the Tennessee Department of Commerce and Insurance (TDCI) Securities Division and the Tennessee Attorney General's Office filed a civil complaint and obtained a temporary injunction against Abidi, his wife Anisha Abidi, co-defendant Ali Raza Galani, and three corporate entities: Star Credit Holdings LLC, Satori Credit Solutions LLC, and NumisMe LLC. The court approved the temporary injunction on or around May 6, 2024, freezing the defendants' bank accounts and financial assets and prohibiting any of the defendants from conducting further business in Tennessee. The state complaint alleged violations of Tennessee securities law including fraudulent activity, misleading investors, commingling and misusing investor funds, and failure to register securities offerings, broker-dealers, and investment advisers with the TDCI. Investors allegedly lost a combined total of over $6.3 million across 17 states. By state estimates, Wyoming investors lost more than $2.4 million, California investors lost approximately $1.14 million, and Tennessee investors lost more than $250,000. The TDCI encouraged additional victims to come forward, noting that investors may be hesitant or embarrassed to report losses.","heading":"Prior State Regulatory Action (May 2024)","sources":[{"url":"https://www.tn.gov/commerce/news/2024/5/6/tdci-tn-ag-take-legal-action-to-protect-consumers-in-case-involving-star-credit-holdings-numisme-misam-and-anisha-abidi-and-raza-galani.html","name":"Tennessee TDCI: Legal Action Against Star Credit Holdings, Numisme, Misam and Anisha Abidi, and Raza Galani","type":"regulatory","credibility":1},{"url":"https://www.tn.gov/commerce/securities/news-and-information/abidi.html","name":"Tennessee Securities Division: Abidi Enforcement Page","type":"regulatory","credibility":1},{"url":"https://www.tn.gov/content/dam/tn/commerce/documents/securities/consentorders/Abidi%20Temporary%20Injunction.pdf","name":"Tennessee Temporary Injunction (PDF)","type":"court_filing","credibility":1},{"url":"https://www.thecentersquare.com/tennessee/article_06552030-0c75-11ef-b49b-37d48036a4a0.html","name":"The Center Square: Memphis Investment Group Has Assets Frozen Over Securities Violations","type":"news_article","credibility":2}],"severity":"critical"},{"content":"The Star Credit Holdings enterprise involved multiple related legal entities and individuals. NumisMe LLC (also referenced in some documents as Nusime LLC) was used to operate the NUME cryptocurrency token, which was allegedly marketed as a security and was fully owned and controlled by Galani and the Abidis. The STAR Investment Club was a separate unregistered investment vehicle used to solicit investors. Satori Credit Solutions LLC was an additional corporate entity named in the state complaint. Ali Raza Galani was named alongside Misam and Anisha Abidi in the 2024 state action; however, Galani does not appear in the June 2026 federal indictment based on available public records. Anisha Abidi, Misam Abidi's wife, was named in the 2024 state proceedings but is not named as a defendant in the June 2026 federal indictment based on available public records. The federal indictment specifies that investor funds were diverted to Abidi and his family members.","heading":"Related Entities and Co-Defendants","sources":[{"url":"https://www.tn.gov/commerce/news/2024/5/6/tdci-tn-ag-take-legal-action-to-protect-consumers-in-case-involving-star-credit-holdings-numisme-misam-and-anisha-abidi-and-raza-galani.html","name":"Tennessee TDCI: Legal Action Against Star Credit Holdings, Numisme, Misam and Anisha Abidi, and Raza Galani","type":"regulatory","credibility":1},{"url":"https://www.tn.gov/commerce/securities/news-and-information/abidi.html","name":"Tennessee Securities Division: Abidi Enforcement Page","type":"regulatory","credibility":1}],"severity":"high"},{"content":"The federal indictment quantifies the funds diverted by Abidi to himself and family members at over $1.9 million. The May 2024 Tennessee state complaint cited a broader figure of over $6.3 million in total investor losses across 17 states, which encompasses the full alleged enterprise including co-defendants and related entities. The difference between the two figures may reflect the scope of each respective proceeding: the federal indictment covers Abidi's individual conduct, while the state action addressed the broader enterprise including Galani, Anisha Abidi, and multiple corporate entities. Neither the DOJ nor TDCI has publicly disclosed the total number of individual victims.","heading":"Investor Losses and Geographic Scope","sources":[{"url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme","name":"DOJ Western District of Tennessee: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1},{"url":"https://www.tn.gov/commerce/news/2024/5/6/tdci-tn-ag-take-legal-action-to-protect-consumers-in-case-involving-star-credit-holdings-numisme-misam-and-anisha-abidi-and-raza-galani.html","name":"Tennessee TDCI: Legal Action Against Star Credit Holdings","type":"regulatory","credibility":1}],"severity":"high"},{"content":"Abidi filed to run for Governor of Tennessee as an independent candidate. His campaign petition was approved, and on May 11, 2026 — approximately one month before the federal indictment — his campaign was publicly announced under the slogan 'People Over Institutions,' centered on due process rights and economic reform. U.S. Attorney D. Michael Dunavant stated that investment fraud schemes are 'devastating to individual investors' and harmful to financial institutions. Abidi's campaign website remained active following the indictment. His candidacy in the context of an active federal indictment was reported by multiple news outlets. The indictment itself does not reference or address his political activities.","heading":"Gubernatorial Campaign","sources":[{"url":"https://dailyhodl.com/2026/06/16/tennessee-gubernatorial-candidate-indicted-over-alleged-1900000-crypto-ponzi-scheme/","name":"Daily Hodl: Tennessee Gubernatorial Candidate Indicted Over Alleged $1,900,000 Crypto Ponzi Scheme","type":"news_article","credibility":2},{"url":"https://thenyjournal.com/misam-abidi-launches-tennessee-governor-campaign-centered-on-due-process-rights-and-economic-reform/","name":"The New York Journal: Misam Abidi Launches Tennessee Governor Campaign","type":"news_article","credibility":3},{"url":"https://www.ballotready.org/people/misam-abidi","name":"BallotReady: Misam Abidi","type":"other","credibility":2}],"severity":"medium"},{"content":"Three federal law enforcement agencies collaborated in the investigation leading to the June 2026 indictment: IRS Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the U.S. Secret Service. The multi-agency involvement reflects the cross-cutting nature of the alleged offenses, which span tax fraud (IRS-CI jurisdiction), wire fraud and financial crimes (FBI and Secret Service), and money laundering. The state-level 2024 action was conducted by the Tennessee Department of Commerce and Insurance Securities Division in coordination with the Tennessee Attorney General's Office.","heading":"Investigating Agencies","sources":[{"url":"https://www.irs.gov/compliance/criminal-investigation/middle-tennessee-man-indicted-for-crypto-ponzi-scheme","name":"IRS Criminal Investigation: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1},{"url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme","name":"DOJ Western District of Tennessee: Middle Tennessee Man Indicted for Crypto Ponzi Scheme","type":"regulatory","credibility":1}],"severity":"low"}],"timeline":[{"date":"2020","event":"Star Credit Holdings begins soliciting cryptocurrency investors, according to the federal indictment period of 2020-2024.","source":"DOJ Western District of Tennessee press release","source_url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme","date_original":"2020-01-01"},{"date":"2024-05-06","event":"Tennessee TDCI and Attorney General obtain temporary injunction freezing assets of Misam Abidi, Anisha Abidi, Ali Raza Galani, Star Credit Holdings LLC, Satori Credit Solutions LLC, and NumisMe LLC. State complaint cites $6.3 million in investor losses across 17 states.","source":"Tennessee TDCI press release","source_url":"https://www.tn.gov/commerce/news/2024/5/6/tdci-tn-ag-take-legal-action-to-protect-consumers-in-case-involving-star-credit-holdings-numisme-misam-and-anisha-abidi-and-raza-galani.html"},{"date":"2024-12-31","event":"Alleged Ponzi scheme operation ends, per the federal indictment period of 2020-2024.","source":"DOJ Western District of Tennessee press release","source_url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme"},{"date":"2026-05-11","event":"Abidi publicly announces independent candidacy for Governor of Tennessee, with campaign centered on due process rights and economic reform.","source":"The New York Journal","source_url":"https://thenyjournal.com/misam-abidi-launches-tennessee-governor-campaign-centered-on-due-process-rights-and-economic-reform/"},{"date":"2026-06-12","event":"Federal grand jury in the Western District of Tennessee returns 11-count indictment against Misam M. Abidi for wire fraud, unlicensed money transmission, false tax return preparation, and money laundering. IRS-CI, FBI, and U.S. Secret Service are listed as investigating agencies.","source":"DOJ Western District of Tennessee press release","source_url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme"},{"date":"2026-06-16","event":"Daily Hodl and other outlets report on Abidi's simultaneous status as a federal criminal defendant and active gubernatorial candidate.","source":"Daily Hodl","source_url":"https://dailyhodl.com/2026/06/16/tennessee-gubernatorial-candidate-indicted-over-alleged-1900000-crypto-ponzi-scheme/"}],"sources_used":[{"url":"https://www.justice.gov/usao-wdtn/pr/middle-tennessee-man-indicted-crypto-ponzi-scheme","name":"DOJ Western District of Tennessee: Middle Tennessee Man Indicted for Crypto Ponzi 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