CFTC charges Ohio Man for  $12M BTC Ponzi scheme 

– CFTC has charged an Ohio man and his companies with fraudulently soliciting over $12 million and misappropriating a digital asset trading scheme – CFTC claims he ran the Ponzi Scheme to fund his lavish lifestyle – SEC and CFTC worked alongside on this matter

An Ohio resident who ran a $12 million Ponzi scheme involving bitcoin has been fined by the US CFTC. The agency reported that the man ran the fraud to pay for his expensive lifestyle . CFTC says that Rathnakishore Giri, of New Albany, Ohio, had posed as a successful crypto trader. He convinced over 150 would-be investors to give him $12 million in cash.

CFTC presses Ponzi scheme charges against an Ohio resident

The complaint, filed in the Southern District of Ohio, targets one Rathnakishore Giri and his two firms: SR Private Equity LLC and NBD Eidetic Capital LLC. The CFTC also wants Giri to reimburse his investors for their losses . Giri is accused of diverting investors’ money to his businesses. Giri lied to customers by claiming he would re-invest their money in investment funds and provide returns. The funds were instead spent on expensive items by Giri.

The complaint also named Giri’s parents, Giri Subramani and Loka Pavani Giri, as relief defendants for possessing funds in which they had no legitimate interest. The agency seeks compensation for defrauded consumers, disgorgement of ill-gotten gains, civil penalties, permanent trading and registration bans, and a permanent injunction against future violations of the Commodity Exchange Act (CEA) and CFTC rules.

CFTC files the charges in collaboration with the SEC 

The complaint was filed the day after the CFTC and the SEC pushed forward a plan to extend reporting requirements for private and large hedge funds to include bitcoin holdings. The rules are part of a collaborative effort by the country’s regulators to increase public awareness of how private funds operate and what assets they handle.

Giri’s lavish lifestyle was characterized by the use of private jets, yacht rentals, a luxurious vacation home, luxury cars, and expensive designer clothes. This way of life exhibited a complete lack of regard for the investors who had faith in him. The CFTC is also continuing to investigate Giri and his businesses. The commission has asked him to return any gains or profits derived from the fraud and any money paid in relation to the misconduct, including salaries, commissions, loans, fees, revenues, and trading profits.

Statement by  Kristin N. Johnson

Johnson said that the CFTC “rigorously surveys markets and enforces regulations,” but that new financial products, like digital assets, can “create new challenges.” This case illustrates these dangers, underscores the ever-present threats, and demonstrates that – no matter the asset class – effective enforcement and customer protections must be among our highest priorities.

Recent interest in digital assets and cryptocurrency market companies advertising high yields or promising quick riches but which conceal deceptive schemes that draw from long-forbidden actions is deeply worrisome. While crypto innovation has several advantages, the CFTC has advised consumers to remain careful. Fraudsters who seek to benefit from an unsuspecting public by taking advantage of popular interest in cutting-edge financial technology will carry out scams that separate investors from their money.

We Bring You Industry News And More

NEXT Story

By Agatha Android