An Ohio man has been sentenced to nine years in federal prison for running a cryptocurrency-based Ponzi scheme that raised at least $10 million over several years, the U.S. Department of Justice said. Rathnakishore Giri pleaded guilty to one count of wire fraud in 2024 and admitted he continued to solicit money even after entering his plea.
How the scheme worked
According to court filings, Giri collected funds from participants between 2019 and 2022 through several entities, including SR Private Equity, LLC, and NBD Eidetic Capital, LLC.
He claimed he would deploy the money into bitcoin derivatives strategies and repeatedly promised high, “risk-free” returns. Prosecutors said Giri misled people about how their funds would be used and falsely assured them their principal was safe.
Authorities said Giri used incoming deposits from new participants to pay earlier ones, operating in line with a classic Ponzi structure. When people asked to withdraw money, he allegedly misrepresented performance and invented explanations for delays.
Regulatory and legal actions
The Commodity Futures Trading Commission filed a civil enforcement action in August 2022, naming Giri, his companies, and his parents as defendants.
Later that year, a federal grand jury indicted Giri on five counts of wire fraud. He ultimately reached a plea deal on a single count, which led to Monday’s sentencing.
Rising crypto fraud losses
The case comes against a backdrop of rapidly growing crypto-related crime. The FBI’s Internet Crime Complaint Center reported more than $11 billion in losses tied to digital-asset fraud in 2025, a 22 percent increase from the prior year.
More than 181,000 complaints involving digital assets were filed that year, with older adults singled out as frequent targets.
Overall, Americans reported more than $11.3 billion in crypto-related fraud losses in 2025, accounting for over half of all cybercrime losses nationwide, according to recent federal data. Investment scams were the most damaging category, totaling $8.6 billion in losses, with nearly three-quarters involving digital assets. Authorities say this reflects a growing pattern of fraudsters using cryptocurrencies as their preferred payment and transfer rail.
Enforcement pressure and regulatory gaps
Regulators are ramping up efforts, but their tools and staffing differ significantly. The Securities and Exchange Commission has indicated it is shifting away from pursuing a high number of cases and is instead prioritizing matters involving clear harm and outright fraud.
At the same time, the Commodity Futures Trading Commission, frequently cited as a candidate for broader oversight of U.S. crypto spot markets, saw its full-time workforce fall by 21 percent between fiscal 2024 and 2025. That contraction has raised concerns about its ability to keep pace with a fast-growing and technically complex sector.
What this means for market participants
Giri’s case highlights the continuing risk of schemes built on promises of guaranteed, outsized returns, particularly in the digital-asset space. Such pitches remain among the strongest red flags for fraud and can erode confidence in crypto markets, often triggering calls for tougher oversight and enforcement.
Authorities urge people to conduct independent due diligence, be wary of pressure to act quickly, and treat “risk-free” or “guaranteed” high-yield offerings as likely scams. The FBI notes that crypto transfers are typically irreversible, making recovery of funds difficult once money has been sent.
Worried about scams in crypto? Learn how crypto safety standards protect you before making your next investment.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
