U.S. prosecutors charge Blockparty’s ex-CTO Rikesh Thapa, also the co-founder, for stealing cryptocurrency and cash worth $1 million from the company. He was arrested on Wednesday and facing an investigation for wire fraud by Manhattan federal court.
Blockparty is a global NFT marketplace where users could buy, sell, and trade NFTs. The platform also offers Web3 tools for creators and builders to mint their creations and earn money.
However, the company co-founder turns out to be suspected of stealing the company’s funds for personal use. According to the investigation done by prosecutors, Thapa spent over $1 million on travel, nightclubs, clothing, and other expenses.
He had claimed that he was safekeeping Blockparty’s funds but immediately fled the country to escape the probe in 2019. Now, the court has found concrete evidence to charge him with one count of wire fraud.
The lack of crypto regulations is leading to tons of frauds and Ponzi schemes within the space. Many executives have been guilty of using customer funds for their own financial adventures without the knowledge; FTX being the biggest example.
With the consistent frauds and scams in Web3, there’s a dire need for a regulatory framework in both the US and worldwide.
So far, the European Union has passed a bill for crypto legislation that European countries will soon adopt into their existing laws.
