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Ohio Crypto Ponzi Operator Gets 9 Years for $10M Fraud
Rathnakishore Giri promised guaranteed returns, used new investor money to pay old ones, and kept soliciting after pleading guilty. Key red flags for crypto investors.
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An Ohio investment manager is heading to prison for nine years after running a cryptocurrency Ponzi scheme that raised more than $10 million from investors. The U.S. Department of Justice announced the sentence for Rathnakishore Giri, 31, of New Albany, Ohio, who pleaded guilty to one count of wire fraud in October 2024. The case is a concrete reminder that crypto investment fraud remains a live risk, even after legal proceedings begin.
The Giri Scheme: Guaranteed Returns and a $10M Ponzi
Federal prosecutors said Giri presented himself as an expert trader in Bitcoin derivatives, promising investors guaranteed returns with no risk to their principal. In reality, the operation was a classic Ponzi scheme: money from new investors was used to pay old investors. Giri had a long history of losing principal, and when victims tried to cash out, he misled them about the reasons for delays.
Many victims lived in or around Columbus, Ohio. The FBI’s Cincinnati Field Office investigated the case. Giri was sentenced to nine years in prison followed by three years of supervised release.
Continued Fraud After Guilty Plea: A Warning for Investors
A critical detail in this case: Giri continued soliciting funds from cryptocurrency investors even after pleading guilty and while awaiting sentencing on pretrial release. That caused additional losses to new victims. This pattern shows that legal action alone does not stop a determined fraudster from seeking fresh capital.