Ohio Crypto Ponzi Operator Sentenced to 9 Years for $10M Investor Fraud

An Ohio-based investment manager has been sentenced to nine years in federal prison after running a $10 million cryptocurrency Ponzi scheme that deceived multiple investors with false promises of guaranteed profits.

Rathnakishore Giri, a 31-year-old resident of New Albany, Ohio, received the sentence on Monday along with three years of supervised release for his role in the large-scale crypto fraud operation. Federal prosecutors said Giri falsely portrayed himself as a highly skilled cryptocurrency and Bitcoin derivatives trader to attract investors seeking high returns in the digital asset market.

According to the U.S. Department of Justice, Giri promised investors substantial profits with “zero risk” while also assuring them that their original investments would remain protected. Instead, investigators discovered that he was using funds from new investors to pay earlier clients, operating what authorities described as a classic Ponzi scheme.

Officials revealed that Giri had suffered major trading losses and failed to generate the profits he advertised. When investors attempted to withdraw their money, he allegedly provided misleading excuses and delayed payments to hide the financial collapse of the operation.

Federal authorities first charged Giri in November 2022 with five counts of wire fraud connected to the crypto investment scam. He later pleaded guilty to one count of wire fraud in October 2024.

Prosecutors also disclosed that Giri continued soliciting funds from crypto investors even while awaiting sentencing. The additional misconduct was reportedly acknowledged in an amended plea agreement before the final sentencing hearing.

The case highlights the growing rise in cryptocurrency-related fraud across the United States. FBI data showed Americans lost approximately $11.36 billion to crypto scams in 2025, representing a 22% increase compared to the previous year.

The Justice Department’s Fraud Section handled the prosecution, led by Acting Deputy Chief Lucy B. Jennings and Trial Attorney Tamara Livshiz.