An Ohio man, Rathnakishore Giri, is sentenced to nine years in connection with a roughly $10 million cryptocurrency “Ponzi” scheme, according to reporting from multiple outlets. Prosecutors say Giri solicits investors with promises of guaranteed or steady returns tied to Bitcoin derivatives trading. Instead of executing legitimate trading strategies, the scheme relies on money from new investors to pay earlier participants, which is characteristic of a Ponzi structure.
One source notes that the U.S. Commodity Futures Trading Commission (CFTC) brought an enforcement action against Giri in August 2022. The enforcement action alleges fraudulent conduct related to how investors’ funds were used and the representations made to attract them.
Across the accounts, the core allegation is that Giri misled investors about how their cryptocurrency investments would be managed and produced returns, while using incoming funds to sustain the appearance of profitability. The sentence reflects the government’s view that the conduct constitutes fraud in the cryptocurrency investment market.
