Ohio man charged by CFTC for alleged $12M Bitcoin Ponzi scheme
Misled investors to fund his lavish lifestyle
On Friday, the Commodity and Futures Trading Commission (CFTC) filed a civil enforcement action against a man for allegedly running a $12 million Ponzi scheme involving bitcoin.
The complaint, filed at the Southern District of Ohio, is a cease-and-desist order against Rathnakishore Giri of New Albany, Ohio, and his two companies NBD Eidetic Capital, LLC and SR Private Equity, LCC. The CFTC also requested the court to order Giri to refund his wronged investors.
According to the CFTC, Giri posed as a successful crypto trader. This allowed him to convince over 150 investors to hand over $12 million in cash plus at least 10 bitcoin, worth around $241,949 at the time of writing.
Via his businesses, Giri promised customers he would re-invest their cash into various digital asset investment funds “with the promise of exceptional returns without the risk of financial loss."
The CFTC alleges Giri instead used investors' money to fund a lavish lifestyle "characterized by use of private jets, yacht rentals, an extravagant vacation home, a luxury car, and expensive clothing."
Giri’s parents, Giri Subramani and Loka Pavani Giri have also been charged as relief defendants for possession of funds to which they have no legitimate interest.
The CFTC stated it is seeking restitution to the defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
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