NEW ALBANY, Ohio (WCMH) — A New Albany investment manager has been arrested and charged with participating in a cryptocurrency investment fraud scheme.
Rathnakishore Giri, 27, is accused of promising investors that he would “generate lucrative returns without risk for the amount of their principal investment, which he guaranteed to return”, according to a statement from the Ministry of Justice. Giri allegedly deceived investors by misrepresenting himself as an expert cryptocurrency trader specializing in Bitcoin derivatives trading.
The DOJ says Giri would instead use money provided by new investors to pay off old investors, which is often how Ponzi schemes work. He is accused of raising at least $10 million from investors.
Giri, who the DOJ says has a track record of investment failures, whether losing lead investors, misleading investors about late payments or getting their principal investment, is charged with five counts of wire fraud and could face up to 20 years in prison if convicted on each count.
The FBI field office in Cincinnati continues to investigate the case.