Police Uncover Rs 1.36 Billion Crypto Network After Initial Arrest with Rs 1.53 Million Cash

Police have uncovered a cryptocurrency transaction network worth over Rs 1.36 billion while investigating a suspect initially arrested with Rs 1.53 million in cash.

On March 19, a team from the Kathmandu Valley Crime Investigation Office arrested 31-year-old Naresh Reule of Nepalgunj Sub-Metropolitan City-20 from Samakhusi Chowk. Acting on a tip-off about involvement in cryptocurrency trading, police detained him for further investigation.

During questioning, Reule admitted that he used to connect individuals interested in cryptocurrency trading with other contacts and earned commission for facilitating such deals.

Through Reule, police reached 32-year-old Dipti Pokharel of Lalitpur Metropolitan City-25, Nakkhu. Reule had introduced Pokharel to a man identified as Pravesh Ali alias SK, also known as Basir Iqbal, a 41-year-old originally from Uttar Shrikant village under Moyna Police Station in Medinipur, West Bengal, India. Police learned through Reule that Pokharel had gone to exchange USD 10,000 with Iqbal.

Following this lead, police arrested Pokharel near Redonpul in Samakhusi with Rs 1.53 million in cash. Based on her statement, Iqbal was later arrested from Ekantakuna, Lalitpur.

After Iqbal’s arrest, police uncovered the scale of the crypto operation. Investigators found that he operated a cryptocurrency trading account on Binance, where he deposited US dollars and conducted transactions. A review of his account history showed total transactions amounting to Rs 1.36 billion.

Iqbal had reportedly been living in Nepal for the past 28 years and operated a service company named “Ali Baba Services” in Samakhusi. Police found that Pokharel, who worked at the company, had also been involved in the crypto transactions.

According to police, the three suspects were jointly involved in illegal cryptocurrency trading. Although they attempted to blame each other during interrogation, investigators believe the operation was carried out in coordination. Police also stated that another individual named Anil Ghimire is linked to the case, though his identity and whereabouts have not yet been confirmed.

Reule has been identified as a repeat offender. He is already facing multiple cases, including banking fraud involving Rs 800,000 based on a complaint filed by Jibral Das. Earlier, another banking offense case was filed against him at the Bhaktapur District Police Office based on a complaint by Nisha Dulal. He is also a fugitive in a foreign employment fraud case filed at the Department of Foreign Employment in Tahachal following a complaint by Ram Bahadur Wali. If released in the current case, he will be handed over to the concerned authorities for further proceedings.

A case has been filed against the three accused at the Kathmandu District Court. The Kathmandu Valley Crime Investigation Office had handed them over to the District Police Range Kathmandu, which completed the investigation and submitted its report. Based on this, the government attorney has filed charges related to illegal hundi (informal money transfer) and use of virtual currency.

The case is currently being heard in the bench of Judge Koshaleshwar Gyawali. Statements from the defendants are ongoing, after which a detention hearing will be held to decide whether they will be remanded in custody, released on bail, or freed on general date.

The prosecution has demanded Rs 1.36 billion in damages under charges of illegal use of virtual currency, in accordance with provisions of the National Penal Code. Additional charges related to hundi have also been filed, including the recovery of Rs 1.53 million of undisclosed source.