WASHINGTON D.C. — An Ohio man was arrested on criminal charges related to his alleged involvement in a cryptocurrency investment fraud scheme, according to a spokesperson for the United States Department of Justice.
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Rathnakishore Giri, 27, of New Albany, allegedly misled investors by fraudulently promoting himself as an expert cryptocurrency trader, with a specialty in trading Bitcoin derivatives and raised at least $10 million from investors, court documents said.
Giri is alleged to have falsely promised investors that he would generate lucrative returns with no risk to their principal investment amount, which he guaranteed to return, according to the indictment.
He allegedly used money provided by new investors to repay old investors and had a record of investment failures, including a long history of losing investors’ principal investments, and misled investors about reasons for delays when they sought to cash out their investments or otherwise obtain the return of their “guaranteed” principal, DOJ said in a news release.
Giri is charged with five counts of wire fraud and faces a maximum penalty of 20 years in prison on each count if convicted.
The FBI is investigating the case.
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