FBI Arrests Crypto Founder for Stealing $1Mn and Using It On Lavish Parties
Authorities in the United States have arrested the former chief technology officer and cofounder of Blockparty, a startup that organizes blockchain events, on suspicion of stealing more crypto and fiat from the company.
10 BTC Swindled Off
Rikesh Thapa was arrested by the Department of Justice for wire fraud. He was accused of stealing money from his company in a personal account and embezzling up to 10 BTC from Blockparty’s assets.
Thapa used the money for his personal expenses, including nightclubs, country trips, and the purchase of expensive branded apparel.
Michael Driscollaid, the FBI agent in charge for the investigation, said in a statement
In order to finance a lavish lifestyle, the defendant repeatedly defrauded and stole from the victim company that he co-founded.
He stated that the FBI will continue to work to ensure that perpetrators of fraud against people and private businesses are held responsible in the criminal justice system.
His Own Medicine: A Taste
Rikesh falsified trading records and deleted all his email history to avoid detection. In July 2019, Rikesh sent the victim company’s CEO fraudulent transaction reports that misrepresented Bitcoin transactions.
Read more: Beware of these 5 scams in 2022-23
Rikesh also stole Blockparty’s utility coins and sold them to interested parties in exchange for cash. Although Rikesh was reported to have sold nearly 174,285 Blockparty tokens, he later discovered that the cash he received was fake.
20 Years Of Prison Life Awaits
These violations took place between December 2017 – September 2019, according to the FBI. According to Thapa’s Linkedin profile, Thapa left Blockparty December 2019.
VerdeBlocks was later founded by him. This business promised to make it possible for conventional energy sources to be replaced with renewable ones via Hedera contracts.
Thapa was charged with one count for wire fraud. This carries a possible sentence of 20 years in jail.
Also read: Crypto Market Fumbles as Vladimir Putin Says, “Risk Of Nuclear War Rising.”
About the author
The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.