The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the owner of two investment companies as part of a plan to increase the transparency of hedge funds.
The CFTC has filed a lawsuit in Ohio District Court against a local resident, Rathnakishore Giri, who organized a $12 million Bitcoin Ponzi scheme. .
“Managing a private equity fund with a focus on cryptocurrencies, Geary invited investors to invest more than $12 million in cash and bitcoin in their funds, promising exceptional returns without the risk of financial loss,” reads the statement. statement CFTC Commissioner Kristin N. Johnson.
She clarified that Geary violated the law on exchange commodities, which prohibits the manipulation of information and the use of “fraudulent schemes.” The CFTC commissioner added that Geary spent investors’ money on living a luxurious lifestyle, “renting private jets and yachts, buying a vacation home, a luxury car and expensive clothes.”
The supervisory authority requires Giri not only to stop all fraud-related activities, but also wants him to waive any monetary benefits “directly or indirectly” associated with a violation of the rules, including wages, commissions, loans, fees, income and any trading profit.
The lawsuit comes a day after the CFTC, along with the U.S. Securities and Exchange Commission (SEC), voted on a proposal that aims to expand the reporting requirements of large cryptocurrency hedge funds.