CIB Exposes Global Cyber Fraud Operation

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The Central Investigation Bureau (CIB) of Nepal Police has dismantled an international network involved in organized online financial scams and cryptocurrency fraud amounting to over Rs 3 billion.

As reported by My Republica, following a meticulous investigation, the CIB initially arrested two individuals—Michael Dagaura, 22, and Anil Bishwakarma, 26—in Kathmandu. Both hail from Bardagoriya Rural Municipality-6 in Kailali and were caught in late December under suspicion of illegal cryptocurrency trading and financial fraud.

Subsequent inquiries led to the arrest of five more individuals: Piyush Shrestha, 21, from Budhanilkantha Municipality-8; Ashwin Chaulagai, 19, from Bhimeshwor Municipality-4; Satyam Kumar Sahani, 22, from Gaur Municipality-9; Roshan Kumar, 27, from Pratappatti Sahebgunj, Bihar, India; and Munna Kumar, 36, from Purba Champas, Bihar, India.

During the operation, law enforcement officials seized two supercomputer CPUs, 13 mobile phones, 19 checks under different names, and Rs 550,000 in cash.

Social Engineering and Crypto Laundering

According to CIB Spokesperson Superintendent of Police (SP) Sudhir Raj Shahi, the scammers used various social media platforms such as WhatsApp, Telegram, and Facebook to lure victims. They posed as bank and digital wallet officials, deceiving users into revealing their OTPs and PINs, which enabled them to access and siphon off funds.

Further investigation uncovered that the fraudulent network utilized cyber phishing schemes, offering lucrative online job opportunities, gambling links, and promises of high returns to lure unsuspecting individuals. Once scammed, the money was funneled into different bank and digital wallet accounts before being converted into cryptocurrency, making detection more difficult.

SP Shahi highlighted another concerning aspect of the fraud, hundi transactions. The group exploited Nepal’s diaspora, enticing them to transfer funds through non-banking channels to evade taxes and remittance fees. Agents abroad collected money, distributed through fraudulent accounts in Nepal.

International Ties and Crypto Laundering

The investigation also revealed that the scam extended beyond Nepal, with links to foreign cryptocurrency transactions. The scammers allegedly converted stolen money into cryptocurrency and deposited it into foreign accounts in exchange for digital assets, effectively erasing the financial trail.

“Our findings indicate transactions worth over Rs 3 billion across multiple bank accounts, with hundreds of millions still in circulation,” SP Shahi stated.

Authorities continue their efforts to dismantle the broader network and track additional members involved in this cyber-financial fraud. Nepal Police have urged citizens to remain vigilant against online scams and avoid sharing sensitive financial information with unverified sources.

The case highlights the increasing challenges law enforcement faces in combating digital fraud and illegal cryptocurrency transactions in the region.

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