The market of digital assets is amidst increasing distrust, and investors are losing their appetite for risky investments. Also, the FTX crash worsened the market, as investors are backing off from further investments! 

Amidst these situations, where the market is going through a slowdown, another fraud case is out. When there are already so many uncertainties in the market, this fraud case is making the aspects worse! This case is about an NFT platform’s co-founder, who is found to have done fraudulent activities. Check out this blog to learn more about this bitcoin trader. 

More On This Fraud Case

The recent fraud case in the market of virtual assets is creating a wave of shock among the community. This fraud case centers around Blockparty. This is an NFT marketplace where you can trade these tokens! 

The ex-chief technology officer of this platform has been arrested after facing severe allegations. The U.S. prosecutors alleged this officer of stealing over 1 Million USD in cash and Crypto. And he stole this amount from the company, including the investors’ funds! 

Who Is This Former Officer Of Blockparty? 

The co-founder of the NFT marketplace, Blockparty, is Rikesh Thapa. He co-founded this platform in 2017 but left it in his middle, around 2019. While leaving the firm, he refused to return the amount of 1 Million USD. This amount was in his bank account as he was to hold it for the company. 

He was arrested from South California while he refused to return this amount to the company. Apart from this fraud case, he also has other allegations against him. 

The spread of this news amidst the high tension and uncertainties in the market is making things worse. Also, the FTX collapse is contributing to this downfall to a significant extent! 

More Accusations On The Former Co-founder

The former co-founder, Thapa, is under more accusations of stealing and fraudulent activities. After his arrest, the federal public defender’s office did not respond soon. This office represents the defendants after their arrest. But in the case of Rikesh Thapa, this did not happen, as the federal office needed more time to respond to this request! 

Also, the NFT firm’s representatives responded negatively to the request. While the case was ongoing in the federal court of Manhattan, more allegations were revealed against Thapa.

What Does The Prosecution Reveal Against Thapa?

The prosecutors revealed that Thapa took 1 Million USD from Blockparty. He said that this was meant to save the amount while the firm was looking to expand its banking options. But the twist comes when the reality is unveiled in the court. 

The prosecutors highlighted the fact that Thapa never used this amount for the firm or its betterment. Instead, he spent the fund on expenses like travel, clothing, and others. 

Apart from this 1 Million USD, the prosecutors are accusing this ex-co-founder of stealing Crypto too. He stole Bitcoins from this firm and deleted the email account to hide everything! 

Later in 2019, Thapa traveled to sell this company’s tokens without authorization. He went to Italy to sell the firm’s Crypto, and the money was found to be counterfeit! This former officer has a high chance of getting sentenced to about 20 years of jail if the allegations are true! 

Blockparty And Its Functions 

This firm has headquarters in New Jersey. In its initial days, Blockparty offered an outlet where you could get tickets for Blockchain-based events. In 2020, this platform converted into an NFT marketplace where investors can trade NFTs. 

As a creator, you can also find great options to create unique NFTs on this platform. Such NFTs will have a lot more value and utility for the owners. If you are a collector and an enthusiast of this technology, you will also find a wide range of unique NFTs here. So, Blockparty is an excellent option for both creators and collectors of NFT! 

Conclusion

The news of such frauds makes it difficult for investors to place their trust and invest considerable funds in the companies. It would be best if you found out how legitimate the company is and its reviews by the users. Before investing any amount, carry out a lot of research about the interested company. 

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