Gitendra Babu (GB) Rai has been implicated in funnelling over Rs184 million into cryptocurrency investments through Lila Pachhai and Malaysia-based NRN Bishwabikram Rai. Investigations reveal the funds were derived from misappropriated savings from cooperatives, including Suryadarshan, Swarnalaxmi, and Sahara.

The Kaski District Attorney’s Office submitted evidence of these transactions to the court while filing a case against 44 individuals on Sunday. Financial records show Rs184.8 million was channelled through digital platforms like Binance, with Pachhai managing Rai’s mobile banking apps to facilitate the transfers.

From a modest background in Gulmi, Pachhai reportedly used some of the funds to acquire properties in Lalitpur, Pokhara, and Butwal, as well as luxury vehicles and jewellery. However, in her statement to authorities, she disclosed that Rai had instructed her to coordinate with Bishwabikram Rai to execute cryptocurrency transactions.

Evidence recovered from Pachhai’s devices revealed that Rai directed the transfers, and she used his credentials for transactions, including payments to Bishwabikram Rai and his wife. Pachhai stated that she was unaware of the full extent of the cryptocurrency operations, claiming she acted under Rai's instructions.

The allegations against Rai, Pachhai, and others include violations of money laundering laws and cooperative regulations. Prosecutors have requested strict penalties, including imprisonment, fines, and asset seizure, citing the organised misuse of cooperative funds.

This case highlights the regulatory challenges posed by cryptocurrency in Nepal and the risks of cooperative mismanagement.