Ohio Investment Manager Sentenced for $10M Crypto Ponzi Scheme

Highlights:

• Ohio Investment Manager Giri has received nine years for a $10 million crypto Ponzi scheme.
• Prosecutors said Giri promised risk-free returns on Bitcoin derivatives.
• He admitted to new investor solicitation after his guilty plea.

Federal prosecutors secured a nine-year prison sentence against Rathnakishore Giri, a 31-year-old investment manager from New Albany, Ohio. The Justice Department said on Monday that Giri raised more than $10 million from investors through a crypto Ponzi scheme. The court also ordered three years of supervised release after his prison term. Many victims lived in or near Columbus, where Giri built trust around claims of Bitcoin trading skill.

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Previously, Giri pleaded guilty to one count of wire fraud. However, prosecutors later said he kept seeking money from crypto investors while awaiting sentencing. This conduct caused further damage and led to an amended plea agreement before the final hearing.

Ohio Crypto Ponzi Scheme Ends With Nine-Year Sentence

According to court documents, Giri promoted himself as a Bitcoin derivatives trader with special market knowledge. He told investors that he could deliver strong returns without risking their principal. Moreover, he promised to return the original investment in full. Those claims helped him attract money from people who wanted crypto exposure without heavy trading risk.

Ohio Investment Manager Sentenced to Nine Years for $10M Cryptocurrency Ponzi Schemehttps://t.co/oKB4gL7ZDY

— Criminal Division (@DOJCrimDiv) May 18, 2026

Prosecutors said the trading story did not match the facts. Giri carried a record of failed investments and repeated losses involving client funds. Instead of producing steady gains, he used new investor money to pay earlier investors. The Justice Department described that pattern as “a hallmark of a Ponzi scheme” in the statement.

When investors asked for withdrawals, Giri gave reasons for delays, according to court filings. He also avoided clear answers when clients sought their guaranteed principal. Therefore, the scheme continued while more investors believed their money remained protected. Prosecutors said his promises hid mounting losses and kept the fraud alive.

Fresh Investor Solicitation Raised The Penalty Stakes

The case attracted more attention because Giri kept raising money even after pleading guilty. He solicited new crypto investors while on pretrial release, federal authorities said. In addition, he later acknowledged that the misconduct occurred before the sentencing under the amended plea agreement. This admission showed new victim damage, with the court already having entered a guilty plea.

The sentence was preceded by a related civil sentence and criminal charge of the same conduct. The CFTC had earlier charged Giri with running the derivatives scheme through related companies. They included SR Private Equity, LLC, and NBD Eidetic Capital, LLC. The CFTC noted that the activity started in 2019. He was later indicted in November 2022 on five counts of wire fraud.

The case comes at a time when federal agencies are monitoring crypto-related scams in the United States. In April, the FBI reported that cryptocurrency losses rose to $11 billion last year. This figure marked an increase of 22% from the previous year, with complaints reaching 181,565. Moreover, officials noted that older Americans are frequently targets of online investment scams.

🚨BREAKING: FBI REPORTS RECORD $11.37B IN CRYPTO SCAM LOSSES FOR 2025

Americans lost $11.37B to cryptocurrency fraud in 2025, up 22% from previous year across 181,565 complaints to @FBI.

Investment scams accounted for $7.2B of total losses, primarily targeting victims… pic.twitter.com/oGSIrVVIyq

— BSCN (@BSCNews) April 7, 2026

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