The U.S. Justice Department sentenced an Ohio resident to nine years in prison for running a multi-year investment fraud scheme that netted at least $10 million, according to a release on Monday.
The perpetrator, Rathnakishore Giri, pleaded guilty to one count of wire fraud in 2024 for bilking investors. According to an amended plea agreement submitted ahead of Monday's sentencing hearing, Giri also admitted to soliciting funds from investors even after entering his guilty plea.
"Giri falsely promised investors that he would generate lucrative returns with no risk to their principal investment amount, which he guaranteed to return," the DOJ wrote in a release on Monday. "In reality, Giri often used money provided by new investors to repay old investors – a hallmark of a Ponzi scheme."
"In addition, Giri had a record of investment failures, including a long history of losing investors’ principal investments, and misled investors about reasons for delays when they sought to cash out their investments or otherwise obtain the return of their ‘guaranteed’ principal," the agency added.
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