CTFC Files Charges Against ‘Bitcoin Ponzi Scheme'
Bitcoin

CTFC Files Charges Against ‘Bitcoin Ponzi Scheme'

2 Minuten
1 year ago

Two separate lawsuits have one thing in common — they both accuse the defendants of Ponzi schemes.

CTFC Files Charges Against ‘Bitcoin Ponzi Scheme'

Inhaltsverzeichnis

"Crypto is a Ponzi" is an accusation as old as cryptocurrency itself. Two new lawsuits were now added to the endless list of Ponzi-related lawsuits.

CTFC Sues Ohio Resident

In the first lawsuit, Ohio resident Rathnakishore Giri and his two companies, SR Private Equity LLC and NBD Eidetic Capital LLC, are accused of running a $12 million Bitcoin Ponzi scheme. Giri is alleged to have posed as a successful crypto trader that would generate profits for his over 150 customers. However, instead of using the revenue to invest in the markets, Giri spent it on his lavish lifestyle. 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."

The Ponzi scheme will probably have financial consequences for Giri, too. The CTFC said it wants the defendant to make up for any monetary benefits attained by his Ponzi scheme, "including and not limited to salaries, commissions, loans, fees, revenues and any trading profits."

Mark Cuban Facing a Lawsuit of His Own

A more prominent defendant features in a class action lawsuit filed in the Southern District of Florida. Mark Cuban, billionaire business owner of the NBA franchise Dallas Mavericks and DeFi connoisseur, is being sued for promoting Voyager Digital's crypto products.
The lawsuit accuses Cuban and Voyager CEO Steven Ehrlich of going to "great lengths to use their experience as investors to dupe millions of Americans into investing — in many cases, their life savings — into the Deceptive Voyager Platform and purchasing Voyager Earn Program Accounts (‘EPAs’), which are unregistered securities."

It further reads that Cuban "went on record calling the Deceptive Voyager Platform ‘as close to risk-free as you’re gonna get in the crypto universe."

After pausing withdrawals early this year, Voyager has told customers that they might not receive all of their crypto back.

Whether Cuban can really be found guilty of promoting a Ponzi scheme remains to be seen, but the plaintiffs come to that very conclusion:

"[...]the Deceptive Voyager Platform was a massive Ponzi scheme, and it relied on Cuban’s and the Dallas Mavericks vocal support and Cuban’s monetary investment in order to continue to sustain itself until its implosion and Voyager’s subsequent bankruptcy."

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