Blockparty co-founder stole $1 million in bitcoins and cash from company, FBI says

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The FBI today arrested and charged the co-founder of blockchain event startup Blockparty with defrauding the company of $1 million in cash and crypto to spend on luxury goods.

Rikesh Thapa, 28, who was CTO of Blockpartys from 2017 to 2019, stole 10 bitcoins from the company and falsified business records to cover his tracks, the Justice Department alleged on Wednesday.

Thapa is also accused of embezzling $1 million in cash. The DOJ says he agreed to keep the money in his personal bank account while the company considered banking options. Thapa then refused to return the money and instead spent it on himself, authorities say.

Thapa spent the stolen money on nightclubs, travel and clothes before again falsifying records to hide what he actually did with the money, according to the DOJ.

Prosecutors further allege that Thapa stole Blockpartys utility tokens, arranged a meeting with potential investors and convinced them to give him money for the assets without the company’s CEO knowing that he could pocket the money. ‘investment.

As we claim today, the defendant repeatedly robbed and defrauded the victim company he co-founded in order to fund a luxurious personal lifestyle, FBI Deputy Director Michael J. Driscoll said.

Blockparty, an event ticketing protocol and NFT marketplace, was launched in 2017 by Thapa with Shiv Madan and Vladislav Ginzburg.

Thapa, of San Diego, Calif., is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

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