Investment Manager Arrested for $10 Million Cryptocurrency Ponzi Scheme

An Ohio man was arrested today on criminal charges related to his alleged involvement in a cryptocurrency investment fraud scheme that raised at least $10 million from investors. 

According to court documents, Rathnakishore Giri, 27, of New Albany, allegedly misled investors by fraudulently promoting himself as an expert cryptocurrency trader, with a specialty in trading Bitcoin derivatives. As alleged in the indictment, Giri falsely promised investors that he would generate lucrative returns with no risk to their principal investment amount, which he guaranteed to return. In reality, Giri often allegedly used money provided by new investors to repay old investors – a hallmark of a Ponzi scheme. In addition, Giri allegedly had a record of investment failures, including a long history of losing investors’ principal investments, and misled investors about reasons for delays when they sought to cash out their investments or otherwise obtain the return of their “guaranteed” principal.

Giri is charged by indictment with five counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office made the announcement.

The FBI is investigating the case.

Trial Attorneys Lucy B. Jennings and Tamara Livshiz of the Criminal Division’s Fraud Section are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.