A cryptocurrency investment fraud scheme raised more than $10 million from investors, many living in or around Columbus, Ohio. Rathnakishore Giri, 31, of New Albany, Ohio, received a nine-year prison sentence and three years of supervised release after pleading guilty to wire fraud. Investors were told he was an expert cryptocurrency trader specializing in bitcoin derivatives and that their principal was guaranteed with no risk. Court documents and investigators found that newer deposits were used to repay earlier participants, a hallmark of a Ponzi scheme. Prosecutors said Giri misled investors when they sought to cash out, provided false explanations for delays, and concealed the true condition of their investments. The scheme involved additional misconduct while he was on pretrial release.
"An Ohio man was sentenced today to nine years in prison and three years of supervised release for orchestrating a cryptocurrency investment fraud scheme that raised over $10 million from investors, many of whom resided in or around Columbus, Ohio. A guilty plea came in October 2024, when Giri admitted to one count of wire fraud. He later acknowledged more misconduct through an amended plea agreement with the department. The additional conduct occurred while he remained on pretrial release before sentencing."
"Investigators found that Giri misled investors when they sought to cash out or recover their guaranteed principal. He gave false explanations for delays and concealed the condition of their investments. The case centered on promises of safe principal, cryptocurrency trading expertise, and returns that prosecutors said were supported by the operation’s actual conduct. Funds from newer investors often repaid earlier investors, a hallmark of a Ponzi scheme."
"Investors were told Giri was an expert cryptocurrency trader with a specialty in bitcoin derivatives. He promised lucrative returns while guaranteeing that their principal would face no risk. Court documents showed a different operation. Funds from newer investors often repaid earlier investors, a hallmark of a Ponzi scheme. He also had a record of investment failures, including losses of investor principal."
"Prosecutors said additional cryptocurrency investors lost money after Giri's guilty plea was entered. Authorities linked the fraud scheme to more than $10 million in investor funds. Investigators said newer deposits were used to repay earlier participants in the operation. A cryptocurrency investment fraud scheme that raised more than $10 million from investors led to a nine-year prison sentence for Rathnakishore Giri, 31, of New Albany, Ohio."
Read at news.bitcoin.com
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