TheBlock
An Ohio man was sentenced to nine years in federal prison on Monday for running a cryptocurrency investment scheme that bilked investors out of at least $10 million, according to a U.S. Justice Department release. Rathnakishore Giri pleaded guilty in 2024 to one count of wire fraud, and an amended plea agreement submitted ahead of sentencing shows he continued soliciting funds from investors even after entering the plea. The DOJ said Giri falsely promised "lucrative returns with no risk" and a guaranteed return of principal, then used money from new investors to pay earlier backers — the textbook structure of a Ponzi scheme.
Why it matters
Giri's case reads as a textbook wire-fraud arc, but the amended plea agreement is the more uncomfortable detail: he was still raising money after admitting guilt. The DOJ also said Giri had a long record of investment failures and misled investors about delays when they tried to cash out. The CFTC filed its own enforcement action in August 2022 against Giri, his entities SR Private Equity LLC and NBD Eidetic Capital LLC, and his parents; the DOJ indicted him on five counts of wire fraud that November.
Market impact
The sentencing lands against a much larger backdrop the FBI flagged in April: crypto-related fraud losses hit a record $11.4 billion in 2025, up 22% year-over-year, with the bureau's Internet Crime Complaint Center logging at least 181,565 crypto-related complaints and warning that seniors are bearing the brunt. Cases like Giri's are individually small relative to that $11.4B aggregate, but they compound the reputational drag the industry is trying to shake as it pushes for spot ETF distribution and TradFi custody rails. For investors, the operational read is unchanged: promised fixed returns plus guaranteed principal in crypto is the canonical fraud signature, and the DOJ is willing to hand out decade-long sentences when the paperwork trails line up.
Frequently asked questions
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Who was sentenced and what was the scheme?
Rathnakishore Giri of Ohio was sentenced to nine years in federal prison on Monday for running a cryptocurrency investment fraud that bilked investors out of at least $10 million, according to a DOJ release.
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What did the DOJ say Giri promised investors?
The DOJ said Giri falsely promised investors lucrative returns with no risk and guaranteed the return of their principal, then used money from new investors to pay earlier backers — the hallmark of a Ponzi scheme.
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Did Giri keep raising money after pleading guilty?
Yes. An amended plea agreement submitted ahead of Monday's sentencing hearing shows Giri admitted to soliciting funds from investors even after entering his guilty plea in 2024.
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What regulatory actions preceded the sentencing?
The CFTC filed an enforcement action in August 2022 against Giri, his entities SR Private Equity LLC and NBD Eidetic Capital LLC, and his parents. The DOJ indicted him on five counts of wire fraud in November 2022.
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How does this case fit into the broader crypto fraud picture?
The sentencing comes against an FBI report from April showing crypto-related fraud losses hit a record $11.4 billion in 2025, up 22% year-over-year, with at least 181,565 crypto-related complaints logged and seniors disproportionately targeted.
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