CFTC Sues Ohio Resident Rathnakishore Giri Fraudster Involving in a $12M Ponzi Scheme
Annie Li Aug 13, 2022 10:30
The U.S. Commodity Futures Trading Commission (CFTC) has charged Ohio resident cryptocurrency scammer Rathnakishore Giri and his company with illegally defrauding up to $12 million in a Ponzi-like scheme.
The U.S. Commodity Futures Trading Commission (CFTC) has charged Ohio resident cryptocurrency scammer Rathnakishore Giri and his company with illegally defrauding up to $12 million in a Ponzi-like scheme.
The Commodity Futures Trading Commission (CFTC) filed injunctive proceedings in the Southern District of Ohio against Rathnakishore Giri (Giri) and its companies SR Private Equity, LLC and NBD Eidetic Capital, LLC.
The suspect and his companies, SR Private Equity, LLC and NBD Eidetic Capital, LLC, claimed to investors that they were operating a private equity investment fund focused on investing in digital assets, soliciting funds from investors, and attracting more than $12 million in cash and bitcoin. to, and promises to invest in the pool of funds and pay the profits.
The funds were not invested, the CFTC said, but were redistributed among the contracted participants in what can only be called a Ponzi scheme.
According to CFTC Commissioner Kristin N. Johnson, "Under the guise that he operated a private equity investment fund with a focus on investing in digital assets, Giri seized upon the contemporary fervor for digital asset investment opportunities and lured unwitting investors to contribute over $12 million in cash and bitcoins to his funds with the promise of exceptional returns without the risk of financial loss."
In fact, according to the indictment, it was an elaborate textbook Ponzi scheme that didn't use the funds for cryptocurrency exchanges, but for their own pleasure, buying valuable goods or making high-volume transactions. Spend, from private jets, yacht charters, and luxury vacation homes, to luxury cars, and more.
Most of the enforcement actions carried out by the CFTC revolve around the cryptocurrency ecosystem. Regardless of size, the CFTC plays an important role in combating cybercrime, especially those that seek safe havens in digital or virtual assets.
Its official document reads: “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.”
The CFTC now requires Giri to cease all fraud-related activities and expects to turn over any monetary benefits “directly or indirectly” related to this, and compensate defrauded customers.
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