Co-founder of NFT platform Blockparty charged with fraud
The Hindu
The case comes amid increased uncertainty in the cryptocurrency industry, which is in the midst of a downturn made worse by the collapse of crypto exchange FTX.
The former chief technology officer of Blockparty was arrested on Wednesday after U.S. prosecutors alleged he stole more than $1 million in cash and cryptocurrency from the company, which operates a marketplace for non-fungible tokens.
(For insights on emerging themes at the intersection of technology, business and policy, subscribe to our tech newsletter Today’s Cache.)
Rikesh Thapa, 28, of San Diego, California, co-founded the company in 2017 and left it in 2019 after refusing to return $1 million in company funds he agreed to hold in his bank account while Blockparty looked for another bank, prosecutors said. Thapa, who was arrested in Southern California, faces one count of wire fraud.
The case comes amid increased uncertainty in the cryptocurrency industry, which is in the midst of a downturn made worse by the collapse of crypto exchange FTX.
The federal public defender's office in San Diego, which typically represents defendants after their arrest, did not immediately respond to a request for comment.
A representative for Blockparty did not respond to a similar request.
Prosecutors allege in the indictment unsealed in Manhattan federal court on Wednesday that Thapa took $1 million from the company for "safekeeping" while it looked to diversify its banking options in case its main bank stopped doing business with crypto firms.
Pune luxury car crash: Police custody for Shivani and Vishal Agarwal in destruction of evidence case
Shivani and Vishal Agarwal remanded to police custody for swapping blood samples in luxury car crash case.