The U.S. Justice Department sentenced Rathnakishore Giri to nine years in prison and three years of supervised release for operating a multi-year investment fraud scheme that netted at least $10 million. According to reports from The Block, Giri pleaded guilty to one count of wire fraud in October 2024 for bilking investors. The DOJ indicted him on five counts of wire fraud in November 2022, following an enforcement action filed by the Commodity Futures Trading Commission in August 2022. The scheme primarily targeted investors residing in or around Columbus, Ohio, highlighting the localized impact of the fraudulent operations.
As reported by The Block, Giri falsely promised investors that he would generate lucrative returns with no risk to their principal investment amount, which he guaranteed to return. In reality, Giri often used money provided by new investors to repay old investors, a hallmark of a Ponzi scheme. The DOJ noted that Giri had a record of investment failures, including a long history of losing investors' principal investments, and misled investors about reasons for delays when they sought to cash out their investments or obtain the return of their 'guaranteed' principal. Despite pleading guilty to wire fraud, Giri continued soliciting funds from crypto investors, resulting in additional victim losses.
According to The Block, the CFTC previously accused Giri of operating his Bitcoin derivatives scheme through entities like SR Private Equity, LLC, and NBD Eidetic Capital, LLC, beginning in 2019. The enforcement action filed in August 2022 targeted Giri, his companies, and his parents. The DOJ indictment in November 2022 also included charges against his parents, highlighting the family's involvement in the fraudulent operations. Giri falsely claimed expertise in Bitcoin derivatives trading, promising investors 'guaranteed high returns' through his scheme.
As reported by The Block, the FBI's Internet Crime Complaint Center said crypto-related losses topped $11 billion in 2025, representing a 22% jump from 2024. The bureau's Internet Crime Complaint Center received at least 181,565 crypto-related complaints in 2025, with scams often targeting the elderly population. This case demonstrates the ongoing challenges in the cryptocurrency investment landscape, where fraudulent schemes continue to exploit investors seeking returns in the digital asset space.
