On May 18, a resident of New Albany, Ohio, Rathnakishore Giri was sentenced to 9 years of federal prison, plus 3 years of supervised release. The charges allege that he orchestrated a cryptocurrency Ponzi scheme involving as much as $10 million. Most notably, after pleading guilty in October 2024, Giri continued raising funds from cryptocurrency investors while awaiting sentencing.
Confirmed Criminal Conduct and Scam Methods
Claimed identity (confirmed): Giri claimed to be an experienced cryptocurrency and Bitcoin (BTC) derivatives trader.
Promises to investors (confirmed): He promised lucrative returns with no risk of funds, and guaranteed investors that their principal would be safe.
Actual operations (confirmed): He used typical Ponzi scheme tactics—paying early investors with money from new investors; multiple failed trades led to client losses; and when investors requested withdrawals, he delayed for various reasons.
Continuing the scam after pleading guilty (confirmed): After pleading guilty in October 2024 and while awaiting sentencing, Giri continued raising funds from cryptocurrency investors; the DOJ press release confirms that in the amended plea agreement, Giri admitted to this additional conduct.
Timeline of the Legal Proceedings
November 2022: Federal authorities first indicted Giri on five counts of wire fraud
October 2024: Giri pleaded guilty to one of the counts
From plea to sentencing: Giri continued raising funds from cryptocurrency investors
May 18, 2026: Sentenced to 9 years in federal prison + 3 years of supervised release
The case was prosecuted by the DOJ Fraud Section, led by Acting Deputy Assistant Attorney General Lucy B. Jennings and trial counsel Tamara Lifshitz.
Frequently Asked Questions
Why was Giri able to continue scamming after pleading guilty?
According to the DOJ press release, after pleading guilty in October 2024 and while waiting for the federal court’s final sentence, Giri continued raising funds from investors. He ultimately admitted to this additional conduct in the amended plea agreement, which was considered together at sentencing.
Why is the “no-risk, high-return” promise a typical scam feature?
In legitimate investment environments, high returns are always associated with high risk. Promising “substantial returns with no risk of any funds” and guaranteeing that principal is safe is one of the core features used to identify Ponzi schemes and investment scams. The DOJ confirmed that Giri was not relying on trading profits, but instead paying early investors with money from new investors.
What does the 2025 cryptocurrency scam loss of $11.36 billion reflect?
According to an FBI IC3 report, in 2025, losses from cryptocurrency fraud in the United States increased by 22% compared with 2024 and have continued a year-over-year upward trend. Giri’s sentencing is one of the latest federal enforcement cases, but overall losses from cryptocurrency scams are still growing.
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