CFTC Files Charges Against $12 Million 'Bitcoin Ponzi Scheme'
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Bitcoin Ponzi Scheme
The CTFC asserts that Giri misled clients by claiming that he would invest their money and capital to generate profits through his businesses, SR Private Equity, LLC and NBD Eidetic Capital, LLC. According to the CTFC, Giri spent the money on ostentatious items. The CTFC said,
"The complaint also alleges in their solicitations to customers, the defendants omitted material facts, including the defendants misappropriated customer funds to pay profits to other customers in a manner akin to a Ponzi scheme, and also misappropriated customer funds to pay for Giri's lavish lifestyle, which included yacht rentals, luxury vacations, and luxury shopping,"
CFTC Seeking Civil Monetary Penalties
The CTFC also designated Giri's parents, Loka Pavani Giri and Giri Subramani, as relief defendants for having funds in their possession in which they had no rightful stake. Giri allegedly misled investors by saying they could withdraw their money from the investment. According to the CFTC, it is seeking civil monetary penalties, permanent trading and registration bans, restitution for the victims of the fraud, disgorgement of ill-gotten gains, and an injunction to prevent additional violations of the Commodity Exchange Act (CEA) and CFTC rules.