Ohio Man Charged by CTFC in Alleged $12,000,000 Crypto Ponzi Scheme
The Commodity Futures Trading Commission (CTFC) is charging an Ohio man with soliciting over $12 million and 10 Bitcoin (BTC) in an alleged Ponzi scheme.
According to a new press release, the CTFC is taking civil enforcement action against Rathnakishore Giri and his two companies for allegedly fraudulently soliciting funds from 150 clients.
The CFTC is also charging Giri’s parents – Giri Subramani and Loka Pavani Giri – as co-defendants for allegedly possessing funds in which they have no legitimate interest.
“The complaint alleges that from approximately March 2019 through the present, the defendants engaged in a fraudulent scheme in which they solicited and accepted over $12 million and more than 10 Bitcoins from at least 150 clients to invest in various digital asset investment funds that allegedly run by the defendants.
According to the complaint, the defendants made a number of false and misleading statements in their solicitations to clients, including guarantees of profits, and Giris assumed success as a digital asset trader.”
The CTFC also alleges that Giri lied to investors about material facts and ran his companies as Ponzi schemes, using the money he collected from clients to finance a luxurious lifestyle.
“The complaint also alleges in its solicitations to clients that the defendants omitted material facts, including that the defendants misused client funds to pay profits to other clients in a manner similar to a Ponzi scheme and also misused client funds to pay for Giri’s lavish lifestyle, which included yacht charters, luxury holidays and luxury shopping.
The complaint further alleges that the defendants commingled customer funds with Giri and the defendants’ funds when the defendants transferred customer funds to Giri and the relief defendants’ personal bank and digital asset trading accounts.”
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Featured image: Shutterstock/FlashMovie/Natalia Siiatovskaia
