Ohio Investment Manager Heading to Prison After Operating $10,000,000 Crypto Ponzi Scheme

An Ohio investment manager has been sentenced to nine years in prison for orchestrating a cryptocurrency fraud scheme that raised more than $10 million from investors, according to the U.S. Department of Justice (DOJ).

According to an official DOJ release, federal prosecutors say Rathnakishore Giri, 31, of New Albany, Ohio, falsely portrayed himself as an expert crypto trader specializing in Bitcoin (BTC) derivatives while guaranteeing investors lucrative returns with no risk to their principal.

According to the DOJ,

“Giri falsely promised investors that he would generate lucrative returns with no risk to their principal investment amount, which he guaranteed to return. In reality, Giri often used money provided by new investors to repay old investors – a hallmark of a Ponzi scheme. In addition, Giri had a record of investment failures, including a long history of losing investors’ principal investments, and misled investors about reasons for delays when they sought to cash out their investments or otherwise obtain the return of their ‘guaranteed’ principal.”

Prosecutors say many of the victims lived in or around Columbus, Ohio.

Giri pleaded guilty to one count of wire fraud in October 2024. Authorities say he continued soliciting funds from cryptocurrency investors even after pleading guilty and while awaiting sentencing on pretrial release, causing additional losses to new victims.

In addition to his prison sentence, Giri was ordered to serve three years of supervised release. The FBI’s Cincinnati Field Office investigated the case.

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