The Commodity Futures Trading Commission today took civil enforcement action against a man suspected of running a $12 million Bitcoin Ponzi scheme to fund his lavish lifestyle.
In a statement Friday, the CFTC said Said Rathnakishore Giri of New Albany, Ohio has posed as a successful cryptocurrency trader.
He is then said to have persuaded more than 150 potential investors to hand over $12 million in cash and at least 10 bitcoins (currently valued at $240,326).
According to the CTFC, Giri reportedly told clients through his businesses, NBD Eidetic Capital, LLC and SR Private Equity, LLC, that he would reinvest his cash and capital in investment funds for a profit. was a lie, says the CTFC.
The CTFC claimed that the money was instead used for Giri blowing up fancy goods.
“The complaint also alleges that in soliciting clients, defendants omitted material facts, including diverting client funds to pay profits to other clients in a manner resembling a Ponzi scheme. and diverting client funds to pay for Giri’s lavish lifestyle, including yacht rentals, 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 with no legitimate interest.
Giri allegedly told investors that they could withdraw cash from their investments, which was not true.
The CFTC imposes restitution to defrauded customers, deprivation of ill-gotten gains, civil penalties, permanent trade and registration bans, and permanent penalties for further violations of the Commodity Exchange Act (CEA) and CFTC regulations. He said he was seeking an injunction.
