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Ohio Investment Manager Arrested for Allegedly Running a $10M Cryptocurrency Ponzi Scheme
The U.S. CFTC had previously taken legal action against the man.
Rathnakishore Giri, a 27-year-old investment manager living in New Albany, Ohio, was arrested on Friday on criminal charges for alleging running a cryptocurrency investment scam that raised at least $10 million from investors, according to a U.S. Department of Justice press release.
Giri allegedly misled investor by promoting himself as an expert cryptocurrency trader with a specialty in bitcoin derivatives. According to the indictment, Giri falsely promised investors lucrative returns on the money they invested with him, with no risk to principal. In reality, he used funds from previous investors to pay off new investors in a classic Ponzi scheme setup.
STORY CONTINUES BELOW
Giri is charged with five counts of wire fraud and faces a maximum penalty of 20 years in prior on each count if convicted.
In August, the U.S. Commodity Futures and Trading Commission (CFTC) issued a cease-and-desist order against Giri and his two companies, alleging he cheated investors out of more than $12 million and seeking to get Giri to pay back his investors. The CFTC charged that Giri used investors’ money to fund a lavish lifestyle of private jets, yacht rentals and more.
Nelson Wang
Nelson edits features and opinion stories and was previously CoinDesk’s U.S. News Editor for the East Coast. He has also been an editor at Unchained and DL News, and prior to working at CoinDesk, he was the technology stocks editor and consumer stocks editor at TheStreet. He has also held editing positions at Yahoo.com and Condé Nast Portfolio’s website, and was the content director for aMedia, an Asian American media company. Nelson grew up on Long Island, New York and went to Harvard College, earning a degree in Social Studies. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.
