A federal judge handed down a nine-year prison sentence this week to Rathnakishore Giri, a self-styled crypto trading whiz who ran a $10 million Ponzi scheme. Giri, who pleaded guilty to wire fraud last year, also got three years of supervised release. The case lands as the FBI's Internet Crime Complaint Center reports that Americans lost $11.36 billion to cryptocurrency scams in 2025 — a 22% jump from the prior year.
The pitch that didn't match the reality
Giri marketed himself as an experienced cryptocurrency and Bitcoin derivatives trader, promising investors no-risk returns and guaranteed principal. Prosecutors described it as a classic Ponzi: money from new investors paid earlier ones, while Giri's own trading record showed failed bets and lost client capital. He was indicted in November 2022 on five counts of wire fraud and pleaded guilty to a single count in October 2024.
Even under indictment, he kept raising cash
While awaiting sentencing, Giri didn't stop. He continued raising money from crypto investors — a fact he later admitted in an amended plea agreement. That detail caught the attention of the Justice Department's Fraud Section, which prosecuted the case. Acting Deputy Chief Lucy B. Jennings and Trial Attorney Tamara Livshiz led the effort.
The Giri sentence comes as the FBI's IC3 publishes its 2025 annual report. Cryptocurrency-related complaints totaled $11.36 billion in losses, a 22% increase over 2024. The agency doesn't break out how many of those cases involve Ponzi structures versus outright hacks or social engineering, but the trend line is clear: crypto fraud is getting more expensive for victims.
Giri's case is one of the larger individual Ponzi prosecutions this year. His nine-year term falls within the typical range for fraud of this size, though the fact that he kept soliciting money after his indictment likely didn't help.
What's next? Giri will report to prison on a date to be set by the Bureau of Prisons. Meanwhile, the FBI continues to investigate hundreds of open crypto fraud cases — many of them still unsolved.
