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An Ohio man has been sentenced to nine years in federal prison for running a $10 million Bitcoin derivatives ponzi scheme, and continuing to solicit new investors even after federal prosecutors had already indicted him.
Rathnakishore “Ravi” Giri received the sentence after authorities concluded he orchestrated a years-long investment fraud operation that collected at least $10 million from victims.
The Crypto ponzi scheme, which had reportedly been operating since at least 2019, also resulted in three years of supervised release following Giri’s prison term. Federal investigators said the operation relied on new investor deposits to pay earlier participants while funds were also diverted toward personal expenses.
The case adds to a growing list of crypto-related fraud prosecutions in the United States as regulators and law enforcement agencies intensify scrutiny of digital asset investment schemes.
According to prosecutors, the Crypto ponzi scheme centered on Giri presenting himself as a highly skilled digital asset trader capable of generating guaranteed profits through Bitcoin derivatives and other cryptocurrency investments.
Authorities alleged that he persuaded hundreds of investors to hand over funds by marketing supposedly low-risk, high-return opportunities tied to crypto trading strategies. Instead of generating legitimate profits, investigators said incoming funds from new investors were used to pay returns to earlier participants — a hallmark characteristic of a Ponzi operation.
“Rathnakishore ‘Ravi’ Giri, an Ohio resident who convinced hundreds of people he could generate guaranteed returns trading Bitcoin derivatives, has been sentenced to nine years in federal prison,” — Editorial Team, Crypto Briefing.
Investigators also alleged that portions of investor capital were redirected to cover Giri’s personal expenditures while the Crypto ponzi scheme continued attracting new victims.
The fraudulent operation reportedly spread largely through personal referrals and word-of-mouth marketing, enabling the scheme to expand steadily over several years without immediate detection.
Financial fraud experts have repeatedly warned that investment offers promising guaranteed crypto returns often carry elevated risks, especially when transparency around trading activity or custody arrangements is limited.
Regulatory pressure on the Crypto ponzi scheme escalated in August 2022 when the U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against Giri.
The agency accused him of operating a fraudulent Bitcoin derivatives investment program through multiple entities. The legal action marked the first major public regulatory intervention connected to the case.
“The Commodity Futures Trading Commission filed a civil action against Giri in August 2022, alleging he operated a fraudulent Bitcoin derivatives scheme through various entities,” — Crypto Briefing report.
Just months later, in November 2022, federal prosecutors indicted Giri on five counts of wire fraud. Each count carried a potential maximum prison sentence of 20 years.
Court filings later showed that Giri pleaded guilty to one count of wire fraud on October 4, 2024. However, authorities stated that the Crypto ponzi scheme investigation continued even after the indictment because Giri allegedly kept seeking additional investments from individuals.
“Even after being indicted, Giri reportedly continued to solicit investments from people,” — Crypto Briefing report.
The continued fundraising efforts reportedly prompted additional investigative work involving both the Department of Justice and the CFTC.
Legal analysts say cases involving crypto investment fraud have become a growing enforcement priority for U.S. regulators as digital assets gain wider retail adoption.
Although the estimated $10 million tied to the Crypto ponzi scheme is smaller than losses recorded in some high-profile crypto collapses in recent years, investigators emphasized the broader impact on victims.
Authorities said the scheme affected hundreds of investors, many of whom may have entered the investment program through trusted personal relationships or community recommendations.
The case illustrates how smaller-scale crypto fraud operations can still inflict significant financial damage, particularly when fraudsters exploit investor enthusiasm surrounding digital assets and emerging financial technologies.
Analysts note that Ponzi-style crypto investment schemes frequently rely on the appearance of exclusivity, technical expertise, or unusually stable returns to attract participants. In many cases, victims only discover problems when withdrawal requests slow down or new investor inflows decline.
The Crypto ponzi scheme conviction also arrives amid continued regulatory debates over how cryptocurrency investments should be supervised and marketed to retail participants.
Federal agencies in the United States have repeatedly urged investors to approach guaranteed-return crypto opportunities with caution and to independently verify the legitimacy of investment platforms, fund managers, and trading operations.
For many victims, however, recovery of lost funds remains uncertain even after criminal convictions are secured.
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