“Identifying and policing fraud in these emerging markets may be difficult or delayed in light of the agency’s limited visibility in these markets”, said CFTC Commissioner Kristin Johnson.
The Commodity Futures Trading Commission has charged Rathnakishore Giri and his Ohio-based companies NBD Eidetic Capital, LLC and SR Private Equity, LLC, with defrauding more than 150 customers over $12 million and at least 10 BTC.
According to the complaint, the defendant and his companies misappropriated customer funds intended for digital asset trading. His parents were charged as relief defendants for being in possession of funds to which they have no legitimate interest.
Ponzi scheme paid for Giri’s lavish lifestyle
The CFTC found that, from approximately March 2019 through the present, the defendants made numerous false and misleading statements in their solicitations to customers, including, guarantees of profits, and Giri’s supposed success as a digital asset trader.
The defendants also allegedly told customers they would have the ability to withdraw their initial investment and alleged profits at any time, which was false, and omitted material facts, including the misappropriation of customer funds to pay profits to other customers in a manner akin to a Ponzi scheme.
The scam also paid for Rathnakishore Giri’s lavish lifestyle, which included yacht rentals, luxury vacations, and luxury shopping, the financial watchdog continued, concluding that the fraud amounted…
