The Commodity Futures Trading Commission (CFTC) has outlined charges against an Ohio man and his companies alleging fraudulent solicitation in connection with digital asset trading.
The complaint was filed in the U.S. District Court for the Southern District of Ohio against Rathnakishore Giri of New Albany, Ohio, and his Ohio-based companies, NBD Eidetic Capital, LLC, and SR Private Equity, LLC. The charges allege Giri and his companies fraudulently solicited more than $12 million and at least 10 bitcoins from over 150 customers.
The CFTC alleges that Giri and his companies misappropriated customer funds intended for digital asset trading. It also charges Giri’s parents, Giri Subramani and Loka Pavani Giri, as relief defendants possessing funds to which they have no legitimate interest.
The CFTC is seeking restitution to defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The CFTC noted the agency has issued several customer protection Fraud Advisories and articles providing fraud warning signs, including collaborating with the Securities and Exchange Commission (SEC) to inform of possible risks associated with investing or speculating in virtual currencies or recently launched Bitcoin futures and options.