- Rathnakishore Giri and his two companies, SR Private Equity LLC(Limited Liability Company) and NBD Eidetic Capital LLC, were charged for running Bitcoin Ponzi Scheme.
CFTC (U.S Commodities Future and Trading Commission) filed a lawsuit in district court against an Ohio resident on Thursday, 11 August, alleging that the company is running a Ponzi Scheme, including Bitcoin.
The Lawsuit filed in the South District of Ohio is a cease and desist order against Rathnakishore Giri and other companies headed by him, SR Private Equity LLC(Limited Liability Company) and NBD Eidetic Capital LLC. Further, CFTC requested the court to order Giri to pay back his Wronged investor.
Kristin N. Johnson, Commissioner at CFTC, mentioned that Giri is accused of engineering and perpetuating a scheme to fool investors interested in digital assets.
Johnson, commissioner of CFTC, on 12 August, quoted her statement that “Under the guise that Giri operated a private equity investment fund with a focus on investing in digital assets, he seized upon the contemporary fervor for digital asset investment opportunities and lured unwitting investors to contribute over $12 million in cash and bitcoins to his funds with the promise of exceptional returns without the risk of financial loss.”
CFTC lodged the Lawsuit after SEC(Securities and Exchange Commission) presented a proposal that seeks to broaden reporting requirements of private funds and big hedge funds to include crypto holdings. The presented proposal is a part of a combined effort by the regulators to increase the clarity of how private funds in the country function and what assets they merge.
CFTC asserts that Giri has violated commodities laws and regulations prohibiting manipulating information and “deceptive device.” Johnson said that Giri used investors’ money to fund a luxurious lifestyle “characterized by the use of private jets, yacht rentals and lavish vacation homes, a luxury car and expensive clothing.”
CFTC wants Giri to emit any monetary benefits “directly or indirectly” attached to the infringement of regulation, including and not limited to salaries, commission, loans, fees, revenues, and any trading profits.
Source: https://www.thecoinrepublic.com/2022/08/13/cftc-charges-rathnakishore-giri-for-executing-a-12-million-bitcoin-ponzi-scheme/