An investment manager from Ohio has been sentenced to nine years in prison for running a fraudulent cryptocurrency Ponzi scheme that scammed investors out of $10 million. Rathnakishore Giri, 31, from New Albany, was also ordered to serve three years of supervised release following his guilty plea to one count of wire fraud in October 2024.
Giri’s scheme centered on false assurances of guaranteed returns through Bitcoin derivatives trading. Rather than genuinely investing the funds he collected, he utilized incoming funds from new investors to pay returns to earlier participants, exemplifying a classic Ponzi scheme structure.
Prosecutors alleged that Giri crafted a façade of success by portraying himself as an affluent investor. He showcased a garage filled with luxury vehicles, including two Lamborghinis, a Tesla, and an Audi R8, and boasted a collection of expensive watches. His lifestyle also included private jet flights and stays in opulent vacation rentals, which he used to lure potential victims into his scheme.
Despite his plea agreement, Giri continued to defraud investors while awaiting sentencing. According to the Ohio Office of Public Affairs, he solicited funds from new cryptocurrency investors during his pretrial release, thereby causing more harm to unsuspecting victims as federal authorities prepared for court proceedings against him.
This sentencing highlights a growing trend in cryptocurrency fraud, which has seen alarming increases recently. The FBI reported that Americans lost over $11 billion to crypto-related crimes in 2025, marking a 22% rise from the previous year. In response, authorities are intensifying efforts to crack down on Ponzi schemes linked to cryptocurrency.
Last year, two individuals from Estonia received 16-month prison sentences for their involvement in the $577 million HashFlare Ponzi scheme. Additionally, in February, a former CEO of a cryptocurrency investment firm was arrested on federal charges related to wire fraud and money laundering after allegedly orchestrating a Ponzi scheme that attracted $328 million. This particular case has also engaged finance giant JPMorgan Chase, which faced a lawsuit shortly thereafter for allegedly failing to detect and prevent the fraudulent activities.
