Man held for swindling over Rs 3 million through bitcoin transactions

Published On: May 22, 2018 06:53 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, May 22: The Central Investigation Bureau (CIB) of Nepal Police has arrested a man on the charge of involvement in transacting illegal crypto-currency ‘bitcoin’ and swindling over Rs 3 million from various individuals.

 A team of CIB on Sunday arrested Dilip Bajra Singh Lama, 44, of Sindhupalchowk from the capital after he was allegedly found swindling people by running a website by the name of ‘Fidelity Auto Storage and Logistics’ and promising to deliver branded cars from USA at cheaper prices. He would later use the swindled money in the Bitcoin exchange business, CIB claimed.   

Bitcoin is a virtual crypto currency payment system which is not backed central bank or single administrator and can be traded for goods or services. The government has imposed ban on any kind of crypto-currency transaction in Nepal.

Details of banking transactions of Lama’s account shows that Lama has already received over Rs 3 million from several people as advance payment for delivering cars from USA within 14 days. “He was found transferring some money deposited in his account for Bitcoin exchange business,” a CIB statement said on Monday.

He has been remanded to five days in judicial custody for further investigation.

CIB’s preliminary investigation has shown Lama was involved in Bitcoin exchange business ever since he went to Malaysia for foreign employment several years ago. “It has been found that Lama has made Bitcoin exchange business his main profession,” the statement read.

With Lama’s arrest, the number of individuals arrested for allegedly getting involved in the illegal bitcoin business has reached ten. Last year, CIB had arrested nine persons from Kathmandu, Chitwan and Pokhara after they were found allegedly running bitcoin exchange business.

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