Key Highlights
- Zhu-Yi-eng got arrested in Kathmandu for his involvement in a crypto scam worth NR 179.97 million.
- Police successfully recovered the transaction record, mobile phone, and documents associated with the case.
- The suspect is under judicial custody for further investigation.
A Chinese national has been arrested in Kathmandu, Nepal, for alleged involvement in a multi-million rupee cryptocurrency scam targeting local residents, police said on April 3.
According to a report, the suspect, identified as Zhu Yi-eng, 35, was arrested from the Thamel area on Thursday by a team from the Kathmandu District Police Circle, according to police spokesperson Pavan Kumar Bhattarai.
Authorities said they recovered transaction records linked to cryptocurrency worth around 179.97 million Nepalese rupees (NRs) at the time of the arrest. Police also seized three mobile phones and several documents allegedly used to facilitate illegal financial activities.
Social media used in fraud
Initial investigations suggest that Zhu approached victims through social media platforms. He reportedly gained their trust by offering high-return cryptocurrency investment opportunities and later convinced them to transfer funds.
Police said the scheme primarily targeted Nepali citizens, taking advantage of growing interest in digital assets while using misleading claims to attract investors.
The investigation is still ongoing
The Kathmandu District Court placed Zhu under a five-day judicial remand shortly after his arrest to allow for further investigation into the case.
Officials have not yet revealed the complete scale of the operation or whether additional suspects may be involved. At the same time, authorities are continuously examining digital evidence and financial trails to decide the extent of the alleged fraud.
Neighbouring country loses crores in scam
The case reflects a broader rise in crypto-related fraud across the region. In Ahmedabad, India, six individuals associated with at least 41 cyber fraud cases across various states, having a total transaction of around ₹1.5 crore (INR), were arrested. Meanwhile, scammers also defrauded around ₹18.5 lakh in Bhopal.
In the first week of April, Pune reported three prominent cyber fraud cases, resulting in a loss of approximately ₹3.8 crore.
Caution for investors
The case becomes another example of increasing cryptocurrency-linked fraud incidents in the region, primarily involving cross-border actors and online platforms. Law enforcement agencies have repeatedly warned users to exercise caution while engaging with unsolicited investment offers, mainly those that promise unusually high returns.
Further updates are expected as the investigation process continues.
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