The Commodity and Futures Trading Commission today filed a civil suit against a man for allegedly running a $12 million Bitcoin ponzi scheme to fund his lavish lifestyle.
In a statement Friday, the CFTC said Rathnakishore Giri, from New Albany, Ohio, has passed himself off as a successful crypto trader.
He then allegedly convinced more than 150 potential investors to hand over $12 million in cash plus at least 10 Bitcoin, with a current value of $240,326.
Through his businesses NBD Eidetic Capital, LLC and SR Private Equity, LLC, Giri allegedly told his clients that he would reinvest their money and capital into investment funds to make them profitable, but that was a lie, according to the CTFC .
The money was instead used by Giri to buy fancy goods, the CTFC claimed.
“The Complaint also alleges in their solicitations of Clients, Defendants omitted material facts, including Defendants misappropriated Client funds to pay benefits to other Clients in a manner similar to a Ponzi scheme and also misappropriated client funds to pay for Giri’s lavish lifestyle, which included yacht charters, luxury vacations and luxury shopping,” the CTFC said.
The CTFC also named Giri’s parents, Giri Subramani and Loka Pavani Giri, as relief defendants for possession of funds in which they have no legitimate interest.
Giri allegedly told investors that they could withdraw their money from the investment, but that was not true.
The CFTC said it is seeking restitution to defrauded customers, restitution of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Exchanges Act. (CEA) and CFTC regulations.
