thecoinrise.com
The United States Commodities Futures and Trading Commission has charged an Ohio resident who operated a $12 million crypto-related Ponzi scheme. The individual perpetrated the deception, according to a charge the CFTC filed at a district court in the region on Thursday.
ENFORCEMENT NEWS: CFTC Charges Ohio Man and His Companies with Fraudulently Solicitating Over $12 Million and Misappropriation in a Digital Asset Trading Scheme. https://t.co/FIGO3foLoq
— CFTC (@CFTC) August 12, 2022
From March 2019 to the present, Rathnakishore Giri, of New Albany, Ohio, allegedly pretended to be a successful cryptocurrency trader, the CFTC said on Friday. Then, it appears that he persuaded more than 150 investors to send him $12 million in cash and at least 10 Bitcoins, which are currently valued at roughly $240,326.
The Southern District of Ohio’s complaint specifically names Rathnakishore Giri and his two businesses, SR Private Equity LLC and NBD Eidetic Capital LLC. The CFTC also demands that Giri pay back his investors’ losses.
Giri capitalized on the current fad for digital asset investment opportunities and enticed unfortunate investors to contribute over $12 million in cash and over ten bitcoin units to his funds with the assurance of outstanding returns without the risk of financial loss. He did this under the guise of operating a private equity investment fund with a focus on investing in digital assets. Additionally, the defendants are accused of withholding important information, such as the fact that they took money from customers and used it to fund Giri’s extravagant lifestyle, which included shopping for designer clothes, taking luxury trips, and renting yachts, much like a Ponzi scheme.
Giri misled clients: CFTC
NBD Eidetic Capital, LLC and SR Private Equity, LLC are two of the companies that Giri is alleged to use investors’ funds to invest in. The CFTC claims Giri misled clients by saying he would invest their money in investment funds and generate returns but instead used the money to buy expensive products instead.
Consumer compensation, forfeiture of illicit gains, civil penalties, long-term trading and registration restrictions, and a permanent injunction against violations of the Commodity Exchange Act (CEA) and CFTC rules are among the requests made by the agency.
Notably, in November 2019, CFTC charged a U.S. resident with $7 million in Bitcoin fraud. Moreover, in June this year, the regulator brought a lawsuit against crypto exchange Gemini for a 2017 Bitcoin Futures Inquiry fraud.