Key Takeaways
- Prosecutors said additional cryptocurrency investors lost money after Giri’s guilty plea was entered.
- Authorities linked the fraud scheme to more than $10 million in investor funds.
- Investigators said newer deposits were used to repay earlier participants in the operation.
Ohio Crypto Fraud Scheme Leads to 9-Year Sentence
A cryptocurrency investment fraud scheme that raised more than $10 million from investors led to a nine-year prison sentence for Rathnakishore Giri, 31, of New Albany, Ohio. The Department of Justice (DOJ) announced the sentence on May 18, 2026. Many investors affected by the scheme lived in or around Columbus, Ohio. The sentence also includes three years of supervised release.
Investors were told Giri was an expert cryptocurrency trader with a specialty in bitcoin derivatives. He promised lucrative returns while guaranteeing that their principal would face no risk. Court documents showed a different operation. Funds from newer investors often repaid earlier investors, a hallmark of a Ponzi scheme. He also had a record of investment failures, including losses of investor principal. The Justice Department detailed:
A guilty plea came in October 2024, when Giri admitted to one count of wire fraud. He later acknowledged more misconduct through an amended plea agreement with the department. The additional conduct occurred while he remained on pretrial release before sentencing.
FBI Investigation Details Investor Repayment Pattern
Investigators found that Giri misled investors when they sought to cash out or recover their guaranteed principal. He gave false explanations for delays and concealed the condition of their investments. The case centered on promises of safe principal, cryptocurrency trading expertise, and returns that prosecutors said were supported by investor money rather than disclosed trading success.
The DOJ stated:
The sentence marks a sentencing development in a case involving more than $10 million in investor funds. After completing his prison term, Giri will remain under supervised release for three years.
Source: https://news.bitcoin.com/doj-says-10m-crypto-scheme-continued-after-guilty-plea-adding-victims/
