The Commodity and Futures Trading Commission today filed a civil enforcement action against a man for allegedly running a $12 million bitcoin Ponzi scheme to finance his lavish lifestyle.
In a Friday statement, the CFTC Told Ratnakishore Giri of New Albany, Ohio posed as a successful crypto trader.
He then reportedly convinced more than 150 potential investors to pay $12 million in cash and at least 10 bitcoins, today valued at $240,326.
Giri reportedly told clients, through his businesses NBD Eidetic Capital, LLC and SR Private Equity, LLC, that he would reinvest his cash and capital into investment funds to earn returns—but according to the CTFC, this is a was a lie.
The CTFC claimed that the money was used by Giri to fly on fancy goods.
“The complaint also alleges in their solicitation from clients, the defendants omitted material facts, including that the defendants misappropriated client funds to pay benefits similar to a Ponzi scheme to other clients and Giri’s lavish lifestyle. Also misappropriated customer funds to pay for 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, in which they have no legitimate interest for possession of money.
Giri allegedly told the investors that they can withdraw their cash from the investment but this was not true.
The CFTC said it is seeking damages for fraudulent clients, wrongfully earned profits, civil monetary penalties, permanent trading and registration restrictions, and a permanent injunction against violations of the Commodity Exchange Act (CEA) and CFTC rules .