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CFTC files civil enforcement action against Ohio man for running $12 million ‘bitcoin Ponzi scheme’

On August 12, the US Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against an Ohio man, alleging that the man fraudulently solicited over $12 million and at least 10 bitcoins from customers as part of an apparent Ponzi scheme.

According to the lawsuit, the individual allegedly used the money to support a “lavish lifestyle,” which included the use of a private plane, boat rentals, and the purchase of a luxury vehicle.

Rathnakishore Giri and his firms, NBD Eidetic Capital, LLC and SR Private Equity, LLC, have been accused of defrauding 150 consumers out of their money by taking funds from those customers that were supposed to be used for digital asset trading and then misusing those funds.

Additionally, Giri’s parents are named as relief defendants in the lawsuit, which states that they are “in possession of funds to which they have no lawful right.”

Beginning in March 2019, the defendants allegedly sought and collected the money in order to participate in digital asset investment funds. The complaint states that this activity took place. The accusations levelled against Giri and his firms include making misleading promises about profit assurances.

According to the lawsuit, the defendants are also accused of making misleading statements to consumers about the availability of their cash for withdrawal at any moment. In addition to this, it is alleged that Giri mixed client money with his personal money and the money that belonged to his parents, Giri Subramani and Loka Pavani Giri, who also had bank accounts.

On Thursday, the Commodity Futures Trading Commission (CFTC) submitted its civil enforcement action to the United States District Court for the Southern District of Ohio. The Commodity Futures Trading Commission (CFTC) is pursuing civil monetary penalties, restitution to clients who were cheated, and disgorgement of ill-gotten earnings. In addition to this, the commission is looking for a permanent injunction to prevent additional violations of the Commodity Exchange Act and CFTC rules, as well as restrictions on trading and registration that are in place permanently.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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