US federal law enforcement on Friday arrested Indian-American Rathanakishore Giri in Ohio on felony charges related to his alleged involvement in a fraudulent cryptocurrency investment scam that bilked investors of at least $10 million. According to court documents, Giri, 27, of New Albany, allegedly misled investors by fraudulently promoting himself as an experienced cryptocurrency trader specializing in bitcoin derivatives trading.
As alleged in the indictment, the defendant falsely promised investors that he would generate lucrative, risk-free returns for the amount of their principal investment that he guaranteed to return, federal prosecutors alleged. In fact, Giri often allegedly used money provided by new investors to pay off old ones — a hallmark of a Ponzi scheme, prosecutors said.
In addition, Giri allegedly experienced investment failures, including a long history of losing investors’ principal investments, and misled investors about the reasons for the delays when they sought to cash out their investments or otherwise obtain returns from their “guaranteed” principals, according to court documents. Giri is charged with five counts of wire fraud. If convicted, he faces up to 20 years in prison in either case. A federal district court judge will decide any sentence after considering the U.S. Sentencing Guidelines and other statutory factors, according to a news release.
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