Chinese national arrested in Kathmandu for cryptocurrency fraud

Kathmandu. Police have arrested a Chinese national for defrauding Nepali citizens through social media and laundering the proceeds through illegal cryptocurrency transactions.

A team from the District Police Range, Kathmandu, apprehended 35-year-old Zhu Yi Feng from the Thamel area on Thursday.

According to police, Feng would establish contact with Nepali citizens via various social media platforms, gaining their trust through various inducements.

Preliminary investigations revealed that he used the bank accounts of Nepali citizens to collect the defrauded funds and subsequently converted them into cryptocurrency, police stated on Friday. 

Transaction of 177.9 million rupees

Police discovered records indicating that the suspect had conducted cryptocurrency transactions totaling 177,970,371.23 rupees.

Additionally, three mobile phones and various documents labeled 'International Express' used for transferring funds were seized from his possession.

According to Superintendent of Police Pawan Kumar Bhattarai, spokesperson for the District Police Range, Kathmandu, the Kathmandu District Court has granted a five-day remand to further investigate the suspect.

Cryptocurrency trading is illegal in Nepal. Police are conducting further investigations to determine if others were involved in this large-scale illicit operation.