Crypto Fraudster Jailed Over $10 Million Ponzi Scheme

An Ohio man has been sentenced to nine years in prison for running a cryptocurrency investment fraud scheme that raised more than $10 million from investors, many of them based around Columbus, Ohio. The case is the latest example of US authorities pursuing crypto-related fraud using traditional wire fraud enforcement powers.

Rathnakishore Giri, 31, of New Albany, Ohio, was sentenced to nine years in prison followed by three years of supervised release after admitting to orchestrating what prosecutors described as a classic Ponzi scheme. According to court documents, Giri falsely marketed himself as a highly skilled cryptocurrency trader with specialist expertise in Bitcoin derivatives trading.

Prosecutors said Giri promised investors lucrative returns while repeatedly assuring them that their principal investments carried no risk and were fully guaranteed. In reality, he had a long record of trading failures and significant investment losses. Rather than generating consistent profits through legitimate trading activity, Giri used money from new investors to repay earlier investors and maintain the illusion of a successful investment operation.

The Department of Justice said Giri also misled investors about delays when they attempted to withdraw funds or recover their guaranteed principal. The fraudulent activity continued for years and ultimately generated losses exceeding $10 million.

The case became more serious after Giri pleaded guilty to wire fraud in October 2024. While awaiting sentencing on pretrial release, he continued soliciting money from additional cryptocurrency investors, causing further losses to new victims. Prosecutors highlighted this post-plea conduct in advance of sentencing, with Giri later admitting to the additional activity as part of an amended plea agreement.

The prosecution reflects continued regulatory and enforcement scrutiny of cryptocurrency investment schemes that promise unrealistic returns or guaranteed protection against losses. Authorities have repeatedly warned that fraudsters continue to exploit investor interest in digital assets by presenting themselves as specialist traders or fund managers operating sophisticated crypto strategies.

The Federal Bureau of Investigation investigated the case. The announcement was made by Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Jason Cromartie, Special Agent in Charge of the FBI Cincinnati Field Office.

The matter was prosecuted by Acting Deputy Chief Lucy B. Jennings and Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section.

Read the press release here.