Six Arrested in Itahari for Involvement in Illegal Cryptocurrency, Hundi, and Online Gambling

Six individuals have been arrested in Itahari for allegedly engaging in illegal cryptocurrency trading, hundi (informal money transfer), and online gambling operations involving transactions worth over NPR 15 million.

The arrests were made by the Province Investigation Team (PIT) under the Koshi Province Police Office during a three-day special operation in the Itahari sub-metropolitan area.

According to police, those arrested are:

• Prabhu Narayan Chaudhary (27), Itahari-12, Khanar

• Prashin Chaudhary (27), Itahari-11

• Santosh Kumar Sah alias Suraj (22), Itahari-7

• Chandan Dom (26), Itahari-11

• Nisan Kumar Khawas (20), Sundarharaicha-2, Morang

• Lal Bahadur Gautam (32), Itahari-12

The group was operating in two teams. One team was led by Prabhu Narayan and Prashin Chaudhary, while the other was led by Santosh Kumar Sah. Police say both groups were actively using Binance crypto wallets and Cash App to facilitate illegal foreign currency exchanges involving U.S. dollars, Indian rupees, and Nepali rupees.

They also ran illegal online gambling platforms and facilitated transactions for third parties, earning commissions ranging from 5% to 20%. High-performance smartphones were seized from the suspects—two from Prabhu and one from Prashin.

According to Deputy Superintendent of Police (DSP) Laxmi Narayan Bhandari of the Area Police Office Itahari, Prabhu had previously been arrested in Morang for similar crypto-based hundi operations. Both he and Prashin had been under police surveillance due to their unusually lavish lifestyle and unverified sources of income.

Police confirm that these operations were being conducted without authorization from Nepal Rastra Bank. The suspects were handed over to the Area Police Office, Itahari, on Jestha 27 (June 10) and have been placed under a 7-day judicial custody by Sunsari District Court for further investigation.