Rupendra G.C., originally from Parbat, had been living in the United States for the past 10 years. He came to Nepal on vacation just a month ago. A professional IT engineer, G.C. was also pursuing a Ph.D. in the U.S. However, on 23rd of Falgun, his arrest by the police shocked his family members.
G.C. was arrested on charges of operating illegal online gambling and cryptocurrency transactions in Nepal while residing in the U.S. According to the police, he had established a network of relatives to facilitate cryptocurrency trading in Nepal.
A few days ago, the police received information about ongoing cryptocurrency transactions. It was discovered that G.C. had set up an office in his own house in Chauthe, Pokhara-14, where he was running online gambling operations.
During the investigation, the police found suspicious activities and conducted a raid on 23rd of Falgun. The raid confirmed cryptocurrency transactions, leading to the arrest of G.C. and four others the next day.
According to the police, G.C. was at the center of an online gambling operation that had already processed transactions worth 300 million NPR (approximately $2.3 million). The police also confiscated various electronic devices used for the transactions, including 31 mobile phones, four laptops, three computers, pen drives, and hard disks.
The arrested individuals include G.C.’s cousin, 33-year-old Bikram Baniya, who runs a clothing store in Pokhara; 22-year-old Sajjan Ghimire; 19-year-old Rojan K.C. (his maternal aunt’s son); and 28-year-old Sandeep Katuwal (his sister’s brother-in-law). G.C. had invested in online gambling and used his relatives to facilitate transactions.
Kaski Police Chief, SP Shyambabu Oliya, stated that transactions worth 300 million NPR were carried out through G.C.’s relatives. “G.C. would invest the money, and his relatives would carry out the transactions. They used WhatsApp, Telegram, and Cash App to find customers and handle investments and communications,” he said.
SP Oliya further explained that G.C.’s cousins, Bikram Baniya and Sandeep Katuwal, acted as Nepal-based agents managing the accounts, while Rojan K.C. and Sajjan Ghimire handled the financial transactions.
This is the first time a significant cryptocurrency-related financial transaction has been uncovered in Kaski, according to the police. While Kathmandu had previously witnessed such cases, this is the first known instance in Kaski.
Although online gambling and cryptocurrency trading are legal in the U.S., they remain illegal in Nepal. Conducting online betting between individuals is against the law. Recently, the Nepal Police have been making arrests related to the illegal use of cryptocurrencies like Bitcoin, Ethereum, Tether, XRP, and Bitcoin Cash in Kathmandu.
G.C. saw an opportunity to make significant profits by operating illegal gambling and cryptocurrency transactions from the U.S. while using his relatives as intermediaries. Since he believed using family members would provide safety, he entrusted them with handling transactions.
His arrest has brought illegal cryptocurrency transactions into the spotlight. Like Nepal, countries such as Bangladesh, Vietnam, China, Bolivia, and Russia also consider cryptocurrency illegal. However, in India, the Supreme Court has ruled in favor of legalizing cryptocurrency.
G.C., who was pursuing a Ph.D. in the U.S., had involved college-going young relatives in his business, luring them with the promise of quick money. As a result, five individuals are now facing legal consequences, and G.C., who came to Nepal for a vacation, is now unable to return to the U.S. anytime soon.
The police have obtained a seven-day custody extension to continue their investigation into G.C. and the other accused individuals.
