The U.S. Commodity Futures Trading Commission (CFTC) filed a $12 million settlement against an Ohio man this week. Bitcoin (BTC) sued for ponzi scheme charges.
The person in question reportedly defrauded victims of as much as $12 million and 10 Bitcoin.
The Manager of Bitcoin Ponzi Scheme Lived a Luxury Life
Allegedly, the man also used the funds he had acquired to finance his “luxury lifestyle” of yacht charter, luxury car and private jet use.
Rathnakishore Giri and its companies NBD Eidetic Capital, LLC and SR Private Equity, LLC are accused of fraudulently soliciting money from 150 clients and misusing client funds designed for digital asset trading. The complaint also accuses Giri’s family as co-defendant of “having unlawful funds”.
CFTC Commissioner Kristin Johnson said in a statement:
“Giri leveraged the current hype for digital asset investment opportunities and convinced unwitting investors to put more than $12 million in cash and Bitcoin into their funds with the promise of exceptional returns without the risk of financial loss.”
According to the criminal complaint, the defendants requested and accepted money to invest in digital asset mutual funds as of March 2019. Giri and its companies have been accused of making false statements, including profit guarantees. According to the complaint, the defendants also told customers that they could withdraw their funds at any time, which was also not true.
In addition, Giri is accused of mixing client funds with his own funds and bank accounts belonging to his parents Giri Subramani and Loka Pavani Giri.
Johnson continued his statements as follows:
“Rather than using client funds to invest in digital assets as promised, Giri pocketed clients’ money and used the funds to finance a luxury lifestyle full of private jets, yacht charters, an extravagant vacation home, a luxury car, and expensive clothing.”
There are too many fraudulent activities in our country. For this reason, experts warn investors to be careful.
*Not investment advice.
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