An Indian-American Rathnakishore Giri, 27, has been arrested for running a cryptocurrency Ponzi scheme that raised $10 million from investors. Giri, who is from New Albany, allegedly misled investors by promoting himself as a cryptocurrency trader, who specializes in Bitcoin derivatives.
He promised his investors that he would generate lucrative returns with no risks to their principal investment amount that he guaranteed to return. However, in reality, Giri used the money given by new investors to repay old investors, which is how a Ponzi scheme works.
Giri is said to have a history of losing investors’ principal investments and misled investors with regard to delays in payments when his investors wanted their money returned. As of now, Giri is charged with five counts of wire fraud. If convicted, he will face a maximum of 20 years in prison on each count.
Meanwhile, the FBI is investigating the case.