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Blockchain Entrepreneur Arrested in California on Fraud Charges
The Justice Department has accused Rikesh Thapa of bilking his startup firm of over $1 million in U.S. currency, cryptocurrency and utility tokens.
The Justice Department has accused Rikesh Thapa of defrauding his startup tech firm of more than $1 million in U.S. currency, cryptocurrency and utility tokens, according to a press release on Wednesday.
Thapa, 28, was arrested on Wednesday in California and is expected to face a federal judge for the Southern District of California.
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The Justice Department didn't name the victim company, but it appears to be New York-based Block Party Tickets, a company that developed a blockchain-based protocol for live event tickets. Thapa’s LinkedIn profile lists himself as a founder and chief technology officer for the tech firm from October 2017 to December 2019. (The indictment lists him as a co-founder.) He lists his current positions as CEO of crypto firm BitOverflow, co-founder of renewable-energy firm VerdeBlocks and co-founder of grocery delivery service Bazaar.
According to the indictment, in 2018, Thapa agreed to receive and hold $1 million of his company’s money in his personal bank account while the firm explored other banking options. Thapa soon began using the funds on personal expenses such as nightclubs, travel and clothing, despite reassuring the company that he was only holding the money “for safekeeping.”
Thapa even falsified bank statements to conceal his theft, and in 2019, he refused to return the $1 million, according to the indictment.
The San Diego native is also accused of embezzling at least 10 bitcoins (BTC) from his company, as well as stealing its utility tokens.
Thapa is being charged with one count of wire fraud, which carries a maximum sentence of 20 year in prison.
Thapa did not immediately respond to a request for comment.
UPDATE (Dec. 7, 17:33 UTC): Added details on Thapa's current listed positions on LinkedIn.
UPDATE (Dec. 7, 23:48 UTC): Updated name of the apparent company in question to Block Party Tickets and added Thapa's non-response.
Nelson Wang
Nelson edits features and opinion stories and was previously CoinDesk’s U.S. News Editor for the East Coast. He has also been an editor at Unchained and DL News, and prior to working at CoinDesk, he was the technology stocks editor and consumer stocks editor at TheStreet. He has also held editing positions at Yahoo.com and Condé Nast Portfolio’s website, and was the content director for aMedia, an Asian American media company. Nelson grew up on Long Island, New York and went to Harvard College, earning a degree in Social Studies. He holds BTC, ETH and SOL above CoinDesk’s disclosure threshold of $1,000.
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