US Authorities shut down SR Private Equity LLC and NBD Eidetic Capital LLC
8/13/2022, 03:32 PM
The US regulator, the Commodities Futures and Trading Commission, has taken action against an alleged Bitcoin pyramid scheme which has seen investors lose at least $12 million. The regulator is now demanding that the scheme's operator, Rathnakishore Giri, return the stolen funds to investors.
Giri is accused of running a Ponzi scheme with Bitcoin that lured investors in with the promise of high returns. However, instead of using the money to invest in Bitcoin, Giri is accused of spending it on luxury items such as yacht rentals and private jets.
The CFTC has accused Giri of violating commodity laws and regulations, and is now demanding that he compensate the victims of the scheme for any financial benefits he has derived from it. This is in addition to ceasing all activities related to the scheme.
The commissioner of the CFTC, Rostin Behnam, has said that the regulator is scrutinizing markets and rigorously enforcing regulations. However, he also acknowledged that digital assets and other relatively new financial products are creating new challenges.
- Cease and desist declaration by the US authorities
- August 12, 2022
- SR Private Equity LLC and NBD Eidetic Capital LLC filed
- Already 12 million US dollars damage
Giri is accused of running a Ponzi scheme with Bitcoin that lured investors in with the promise of high returns. However, instead of using the money to invest in Bitcoin, Giri is accused of spending it on luxury items such as yacht rentals and private jets.
The CFTC has accused Giri of violating commodity laws and regulations, and is now demanding that he compensate the victims of the scheme for any financial benefits he has derived from it. This is in addition to ceasing all activities related to the scheme.
Using the pretense that he runs a private equity fund focused on investing in digital assets, Giri capitalized on the current craze for digital asset investment opportunities, luring unsuspecting investors to invest more than $12 million with the promise of exceptional returns without the risk of financial loss. deposit dollars in cash and bitcoins into his funds.- Commodities Futures and Trading Commission
The commissioner of the CFTC, Rostin Behnam, has said that the regulator is scrutinizing markets and rigorously enforcing regulations. However, he also acknowledged that digital assets and other relatively new financial products are creating new challenges.