- Rathnakishore Giri was sentenced to nine years for a $10M crypto Ponzi scheme.
- Giri posed as an expert Bitcoin derivatives trader and used new investor funds to repay earlier victims.
- Crypto-related fraud reached $11.36B in 2025, up 22% year-on-year across 181,565 complaints.
Rathnakishore Giri, a 31-year-old from New Albany, Ohio, was sentenced to nine years in federal prison plus three years of supervised release for running a $10 million cryptocurrency Ponzi scheme.
Prosecutors said Giri falsely posed as a Bitcoin (BTC) derivatives trading expert, promising guaranteed high returns and principal protection while using new investor funds to pay earlier ones, defrauding victims primarily around Columbus, Ohio.
Giri had previously pleaded guilty in October 2024 to one count of wire fraud. Despite being on pretrial release after his guilty plea, he continued soliciting new cryptocurrency investments from additional victims, conduct he later admitted as part of an amended plea agreement.
How Giri Defrauded Investors in the Bitcoin Ponzi Scheme
Giri fraudulently presented himself as an expert BTC derivatives trader and solicited investments by falsely promising consistent, high returns with no risk to principal. He explicitly guaranteed investors full repayment of their original capital, creating a false sense of security.
In reality, Giri operated a Ponzi scheme, using funds from new investors to pay earlier participants rather than generating legitimate trading profits. He had a documented history of losing investor capital in unsuccessful trades but concealed these losses from prospective clients.
When investors attempted to withdraw their funds or reclaim their “guaranteed” principal, Giri misled them with repeated excuses and delays, effectively blocking payouts and prolonging the fraud.
What Does it Mean for Crypto Investor Protection?
The sentencing highlights stronger U.S. enforcement against crypto fraud, but investor exposure remains high. According to reports, crypto-related fraud reached $11.36 billion in 2025, marking a 22% year-on-year increase across 181,565 complaints. Investment scams, predominantly Ponzi-style schemes, accounted for $8.65B, making them the leading driver of cyber-enabled financial losses.
Globally, crypto fraud continues to scale rapidly. Chainalysis estimates that $17B was stolen through crypto fraud and scams in 2025, while TRM Labs reports that Ponzi and pyramid schemes alone captured about $6.1B in illicit victim funds, up 49% from 2024. Losses are increasingly concentrated in large schemes exceeding $100M, showing rising sophistication and operational scale across fraud networks.
Despite stronger enforcement of crypto regulations and increased DOJ prosecutions, investor protection in cryptocurrency markets still relies heavily on individual due diligence and awareness of fraud prevention. FBI initiatives such as Operation Level Up have already prevented over $500M in crypto fraud losses, but early reporting to IC3.gov remains critical for disrupting active crypto fraud schemes.
Related: Praetorian Group International CEO Sentenced to 20 Years for $200M Bitcoin Ponzi Scheme
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