A California man who promised investors guaranteed returns from Bitcoin derivatives trading was sentenced to nine years in prison this week for running a $10 million Ponzi scheme. Rathnakishore Giri, the operator, used fresh investor funds to pay off earlier participants — the classic hallmark of a Ponzi — while falsely marketing a low-risk trading strategy.
How the scheme worked
Giri pitched what he claimed was a sure thing: guaranteed returns from trading Bitcoin derivatives. Instead of actually generating profits, he simply recycled money from new investors to pay the earlier ones. The U.S. Department of Justice said the scheme collected roughly $10 million from victims over its lifespan.
The sentencing
On Tuesday, a federal judge handed down the nine-year prison term. Giri faced a maximum of 20 years on wire fraud charges but received a sentence on the lower end of federal guidelines. Prosecutors argued that the scheme was deliberate and that Giri showed no remorse during proceedings.
Asset forfeiture
The court also ordered forfeiture of assets tied to the scheme, though the DOJ did not specify how much would be returned to victims. Giri was taken into custody immediately after the hearing. No additional charges are pending against him.
