Investment Manager Arrested For $10 Million Crypto Ponzi Scheme

According to a Department of Justice press statement, Rathnakishore Giri, a 27-year-old investment manager from New Albany, Ohio, was detained on Friday on suspicion of conducting a crypto investment scheme that defrauded investors from at least $10 million.

The indictment claims that Giri misrepresented to investors that there was no risk to their principal and that they would receive lucrative returns on their investments. He ran a standard crypto Ponzi scheme, using money from old investors to pay off new ones.

The US Commodities Futures and Trading Commission (CFTC) issued a cease-and-desist order against Giri and his two businesses in August, alleging that he had defrauded investors of more than $12 million.

The CFTC was attempting to force Giri to repay his creditors. The regulator claimed that Giri used investor funds to support an opulent lifestyle that included using private jets, renting yachts, and more.

By portraying himself as a seasoned cryptocurrency trader with a focus on Bitcoin derivatives, Giri reportedly deceived investors. Giri is accused of five counts of wire fraud, and if found guilty, each count carries a potential 20-year prison sentence.

According to the DOJ’s report, the FBI is investigating the case.

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