Blockparty co-founder maintaining ‘luxurious lifestyle’ charged with fraud

Crypto Regulation
Blockparty co-founder maintaining ‘luxurious lifestyle’ charged with fraud

Rikesh Thapa, who co-founded the NFT platform Blockparty, was arrested by U.S. prosecutors. The 28-year-old Californian allegedly spent $1 million of the company’s funds on parties.

According to the papers published by the New York court, Rikesh Thapa was one of the co-founders of Blockparty in 2017 but left in 2019 after refusing to return $1 million from his bank account to the company.

The company’s fund was temporarily given to him when the company was seeking a better banking option. However, Thapa instead spent it on himself. FBI Assistant Director, who proceeded with the case, described Rikesh Thapa as a spend drift who wasted all the stolen money on nightclubs, travel, and clothes. The document reads:

“As we allege today, the defendant repeatedly stole from and defrauded the victim company — which he co-founded — in order to fund a luxurious personal lifestyle.”

Apart from swindling Block Party’s $ 1 million, the court also alleged that he stole 10 Bitcoin and falsified records to cover his tracks. Moreover, Thapa purportedly took Blockparty’s utility tokens and set up a meeting with would-be investors, convincing them to give him cash for the assets. 

As a result, Thapa will likely face a one-count wire fraud charge, carrying a maximum sentence of 20 years in prison. 

Shiv Madan and Vladislav Ginzburg, along with the defendant, founded Blockparty as an event-ticketing protocol and NFT marketplace in 2017 in New Jersey. In 2020, the company launched its marketplace for non-fungible tokens or NFTs.

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Emmanuel O.

Emmanuel O. is a savvy blockchain content writer with about 5 years of experience. He helps crypto brands gain visibility by creating content with a tone, voice, and style that aligns with their vision and goals. When he is not writing or tweeting about cryptocurrencies, NFTs, web3, or metaverse, he is either cycling, watching movies, or reading other content.