A civil enforcement action was brought against a man by the Commodity and Futures Trading Commission (CFTC) today. The guy is accused of conducting a Bitcoin Ponzi scheme with a total value of $12 million in order to fund his extravagant lifestyle.
Rathnakishore Giri of New Albany, Ohio, is accused of pretending to be a successful cryptocurrency trader, according to a statement released by the CFTC on Friday.
After that, he allegedly persuaded over 150 others who were interested in investing to part with a total of $12 million in cash and at least ten bitcoins, each of which is currently valued at $240,326.
The Commodity Futures Trading Commission (CTFC) asserts that Giri misled clients who dealt with him through his companies NBD Eidetic Capital, LLC and SR Private Equity, LLC, by telling them that he would re-invest their cash and capital into investment funds in order to generate profits for them.
According to the CTFC’s allegations, however, Giri blew the money on frivolous purchases of luxury goods instead.
“The complaint also alleges in their solicitations to customers, the defendants omitted material facts, including the defendants misappropriated customer funds to pay profits to other customers in a manner that is similar to a Ponzi scheme and also misappropriated customer funds to pay for Giri’s lavish lifestyle, which included yacht rentals, luxury vacations, and luxury shopping,” the CTFC said.
The complaint also alleges in their solicitations to customers that the defendants omitted material facts, including the defendant’s misappropriation.
Additionally, the CTFC identified Giri’s parents, Giri Subramani and Loka Pavani Giri, as relief defendants for their possession of monies in which they had no legal interest.
Giri allegedly assured investors that they would be able to withdraw their cash from the investment at any time, but this was not the case.
According to the CFTC, it is “seeking restitution to the customers who were defrauded, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations. All of these things are in addition to seeking a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.”
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