CFTC Files Charges Against $12 Million ‘Bitcoin Ponzi Scheme’

The Commodity and Futures Trading Commission is suing a man for allegedly running a $12 million Bitcoin Ponzi scheme to support his opulent lifestyle. The CFTC claimed in a statement on Friday that Rathnakishore Giri of New Albany, Ohio, pretended to be a successful cryptocurrency trader. He allegedly persuaded more than 150 potential investors to deliver $12 million in cash and at least 10 Bitcoins after that. Bitcoin Ponzi Scheme The CTFC asserts that Giri misled clients by claiming that he would invest their money and capital to generate profits through his businesses, SR Private Equity, LLC and NBD Eidetic Capital, LLC. According to the CTFC, Giri spent the money on ostentatious items. The CTFC said, “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 akin 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,” CFTC Seeking Civil Monetary Penalties The CTFC also designated Giri’s parents, Loka Pavani Giri and Giri Subramani, as relief defendants for having funds in their possession in which they had no rightful stake. Giri allegedly misled investors by saying they could withdraw their money from the investment. According to the CFTC, it is seeking civil monetary pe...