According to the CFTC, an Ohio man and his associates used Bitcoin and cash from would-be investors to finance a luxurious lifestyle.
Today, the Commodity and Futures Trading Commission filed a civil enforcement suit against a man accused of running a $12 Million Bitcoin Ponzi scheme to finance his extravagant lifestyle.
The CFTC stated Friday that Rathnakishoregiri, New Albany, Ohio, posed for success as a crypto trader.
Then, he allegedly persuaded over 150 investors to give him $12 million cash and at least 10 bitcoins. Today, his portfolio is worth $240,326.
Giri allegedly claimed that he would reinvest customers’ cash and capital in investment funds through his two businesses, NBD Eidetic Capital, LLC, and SR Private Equity, LLC. However, the CTFC found this to be a fabrication.
Instead, Giri used the money to buy fancy goods, according to the CTFC.
The CTFC stated that the complaint also alleges that the defendants made solicitations to customers and misappropriated customer money to pay profits to others customers in a manner similar to a Ponzi scheme. They also misappropriated customer cash to pay Giri’s extravagant lifestyle which included yacht rentals and luxury vacations.
The CTFC also named Giri’s parents, Giri Subramani Giri and Loka Pavani Giri as relief defendants in the case of possession funds in which they have no legitimate right.
Giri claimed that investors were able to withdraw their money from the investment, but this was not true.
According to the CFTC, it seeks restitution for the victims of fraud, disgorgement and civil monetary penalties as well as permanent trading and registration bans.
