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FBI Arrests an Investment Manager for $10 Million Cryptocurrency Ponzi Scheme

FBI busts a guy from Ohio on fraud charges. Charges were related to a cryptocurrency investment scam that allegedly garnered over $10 million. Rathnakishore Giri, 27, of New Albany, is accused, according to court filings. He is blamed for deceiving investors by falsely advertising himself as a crypto trader who focuses on trading Bitcoin derivatives

According to the indictment, Giri assured his investors a full recovery of their initial investments while telling them they would earn substantial profits with no danger to their capital. It has been claimed that Giri, as is typical of Ponzi schemers, often repaid earlier investors with funds provided by new ones.

On top of that, Giri reportedly lied to investors about the reasons for delays when they tried to cash out their investments or otherwise seek the return on their “guaranteed” deposit. This includes a lengthy history of Giri losing clients’ primary investments.

Further, the indictment against Giri includes five charges of wire fraud. The maximum sentence for each offence he faces is 20 years in jail.
The U.S. Sentencing Guidelines and other statutory criteria will be taken into account by the federal district court judge who will decide on a sentence.

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This was announced by Criminal Division Assistant Attorney General Kenneth A. Polite, Jr. and FBI Cincinnati Field Office Special Agent in Charge J. William Rivers. The matter has been turned over to the FBI for further investigation. Moreover, the case is being prosecuted by Lucy B. Jennings and Tamara Livshiz, trial attorneys from the Criminal Division’s Fraud Section.