An Ohio man was arrested Friday on criminal charges related to his alleged involvement in a cryptocurrency investment fraud scheme that raised at least $10 million from investors, officials stated.
According to court documents, Rathnakishore Giri, 27, of New Albany, allegedly misled investors by fraudulently promoting himself as an expert cryptocurrency trader specializing 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 the 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.
He faces up to 20 years in prison on each count if convicted.
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 get in touch with the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.