News

FBI Arrests Crypto Founder For Stealing $1Mn, Used It On Lavish Parties

The FBI arrests Rikesh Thapa, former CTO of Blockparty, for stealing $1Million which was used on parties, nightclubs & expensive clothes.
Published by
FBI Arrests Crypto Founder For Stealing $1Mn, Used It On Lavish Parties

The former chief technology officer and co-founder of Blockparty, a blockchain events startup, has been arrested by authorities in the United States on suspicion of stealing more than $1 Million worth of crypto and fiat combined from the company.

Advertisement

10 BTC Siphoned Off

Rikesh Thapa was charged with wire fraud by the Department of Justice, which alleges that he stole money held on his company’s behalf in a personal bank account and that he embezzled upwards of 10 BTC from Blockparty’s holdings.

According to the complaint, the money had been used by Thapa for his own personal expenses like spending on nightclubs, country tours, and buying expensive branded apparel.

Michael Driscollaid who’s the FBI agent in charge of the investigation said in a statement:

The defendant repeatedly stole from and defrauded the victim company, which he co-founded, in order to fund a luxurious personal lifestyle.

He further stated that, the FBI will continue to work in order to ensure perpetrators willing to scam people & private businesses are held accountable in the criminal justice system.

Advertisement

A Taste Of His Own Medicine

To avoid detection, Rikesh falsified his trading records and deleted all of his email history and in July of 2019, he sent the victim company’s CEO a fraudulent transaction report which misrepresented Bitcoin transactions.

Read More: Watch Out For These 5 Scams in 2022-23

In yet another facet of the scheme, Rikesh stole Blockparty’s utility tokens and sold them to interested parties for cash. It’s reported that Rikesh sold almost 174,285 of Blockparty’s tokens but in a twist of fate, he later determined that the cash received was counterfeit.

Advertisement

20 Years Of Prison Life Awaits

According to the FBI, these violations occurred between December 2017 and September 2019. Thapa left Blockparty in December 2019, according to his Linkedin profile.

He later established VerdeBlocks, a business that promised to make it possible to transition from conventional to renewable energy sources via Hedera contracts.

Thapa is charged with one count of wire fraud, which carries a possible 20-years of jail sentence.

Also Read: Crypto Market Fumbles As Vladimir Putin Says “Risk Of Nuclear War Rising”

Advertisement

Share
Pratik Bhuyan

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

ProShares Files for Index Crypto ETF Tracking Bitcoin, Ethereum, XRP, and Solana

Leading asset manager ProShares is seeking to establish a new crypto ETF tracking the CoinDesk…

October 22, 2025
  • News

Trump Says Meeting with China May Not Happen, Bitcoin Drops

U.S. President Donald Trump has cast doubts over his meeting with China's President Xi Jinping.…

October 21, 2025
  • News

The Great Rotation? Bitcoin Rises as Gold Sees Largest Daily Drop Since 2013

Experts have indicated that a rotation might be occurring with investors moving from gold to…

October 21, 2025
  • News

Crypto Czar David Sacks to Meet Senate Republicans In Bid To Advance Market Structure Bill

Crypto and AI Czar David Sacks is set to meet with Republican members of the…

October 21, 2025
  • News

Waller Floats ‘Payment Account’ Framework to Provide Crypto Firms Access To Fed’s Payment Rails

Federal Reserve Governor Chris Waller has floated the idea of a 'Payment account' framework that…

October 21, 2025
  • Altcoin News

Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump

Aster is regaining momentum in the perp DEX space as it outpaces Lightchain in 24-hour…

October 21, 2025