Bangladeshi National Arrested in Kathmandu's Thamel for Illegal Cryptocurrency Trading

Kathmandu. Police have arrested a Bangladeshi national involved in the illegal trading of cryptocurrency in Thamel, a tourist hub in Kathmandu, seizing a large amount of evidence.

The District Police Range, Kathmandu, took 29-year-old Bangladeshi national MD Shihabul Islam into custody near Chhaya Center in Thamel on Wednesday night. Islam, whose home is in Pabna, Bangladesh, and who was currently residing in Thamel, was apprehended based on specific intelligence that he was illegally trading digital currency through a mobile app.

During the initial investigation, police found that the arrested Islam had traded cryptocurrencies, including 'USDT,' amounting to NPR 3,049,736.93 on his mobile phone.

Police Superintendent and Spokesperson Pawan Kumar Bhattarai informed that since the use and trading of cryptocurrency are completely banned in Nepal, an investigation has been initiated against him under the offense of not using intangible currency as per Section 262 (A) of the Muluki Criminal Code, 2074.

Police also recovered 33 checkbooks from various banks, 7 ATM cards, and 7 KYC forms used for opening bank accounts from Islam. This raises suspicion that he might have been operating a large network to transfer illicit funds through the banking system. Additionally, 9 SIM cards, 2 mobile phones, NPR 60,000 in Nepali cash, and a check worth NPR 200,000 issued in the name of MD Mostahin Fahmid were also recovered from him.

Police estimate that the arrested Bangladeshi national might have been using Nepal as a transit point or operating from here to conduct international illegal digital currency trading. A detailed study of the recovered documents and equipment is currently underway.