Crypto Trader Jailed 9 Years for $10M Bitcoin Fraud Scheme

TLDR

• Rathnakishore “Ravi” Giri has been handed a nine-year federal prison sentence.
• Giri operated a cryptocurrency Ponzi scheme that collected over $10 million.
• Prosecutors stated that hundreds of investors were deceived by promises of guaranteed returns.
• In October 2024, Giri admitted guilt to a single count of wire fraud.
• The CFTC initiated a civil lawsuit against Giri prior to his federal indictment.

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(SeaPRwire) –   Rathnakishore “Ravi” Giri, an Ohio-based individual charged with orchestrating a cryptocurrency investment scam, has received a nine-year federal prison term for a scheme that amassed over $10 million from hundreds of investors.

Giri, 31, of New Albany, Ohio, also got three years of supervised release following his guilty plea to one wire fraud count. Prosecutors noted he tricked investors by asserting he could produce substantial returns via Bitcoin derivatives and other cryptocurrency trading techniques.

The case centered on pledges that investors’ principal would be safeguarded and returned. Federal officials stated these claims were untrue, and Giri used money from new investors to pay off earlier ones and cover his personal costs.

Prosecutors State Giri Promised Safe Crypto Returns

Per prosecutors, Giri portrayed himself as a seasoned digital asset trader skilled in Bitcoin derivatives. He informed investors their funds would go toward crypto trading and their initial investment was secure.

Authorities indicated the operation had been running since at least 2019, attracting funds from investors via trust-based connections, personal referrals, and assertions of trading proficiency. A number of investors were located in and around Columbus, Ohio.

The scam also included stalling tactics when investors requested to withdraw their funds. Prosecutors noted Giri provided deceptive explanations for missed payments, delayed principal refunds, and unsuccessful withdrawals.

CFTC Brought Civil Action Prior to Criminal Indictment

In August 2022, the Commodity Futures Trading Commission (CFTC) filed a civil lawsuit against Giri, claiming he ran a fraudulent Bitcoin derivatives scheme via multiple entities.

Giri was indicted on five wire fraud counts in November 2022; each count carried a maximum potential sentence of 20 years in prison.

On October 4, 2024, Giri pleaded guilty to one wire fraud count. Federal authorities stated he kept seeking investment funds even after legal proceedings had started, prompting further scrutiny from the Department of Justice and the CFTC.

The FBI conducted the investigation, while the Justice Department’s Fraud Section managed the prosecution. Authorities have advised victims of cryptocurrency investment fraud to report incidents via the FBI’s Internet Crime Complaint Center.

Guaranteed Returns Continue to Be a Critical Red Flag for Crypto Fraud

The Ohio cryptocurrency Ponzi scheme joins a string of cases involving digital asset investment offers centered on promised returns and protected principal.

Bitcoin derivatives can be highly volatile, and federal agencies have repeatedly cautioned that no crypto trading manager can eliminate market risk while offering high returns. Promises of fixed profits, secure principal, and quick withdrawals are common indicators examined in crypto fraud probes.

The Giri case also illustrates how smaller crypto fraud schemes can impact large numbers of victims. Even though the $10 million sum is less than that of some bigger digital asset fraud cases, prosecutors noted hundreds of investors were harmed.

Giri’s sentence moves the criminal case to a new phase following years of investigation, civil action, indictment, and plea processes. He will serve nine years in prison, with three years of supervised release to follow.