HyperFund scam victims in Nepal, Nepalis abroad lose billions, seek justice

KATHMANDU: Baburam Kandel from Butwal, On December 25, 2021, was advised by a friend from his village to join HyperFund, an online networking business. Without giving much thought to this new venture, he joined the digital business bandwagon, expecting a windfall.

Initially, Kandel invested $1,000, equivalent to Rs 135,161.80 based on the current foreign exchange rate. However, within just four months, he found himself drawn deeper into the scheme.

Kandel was able to draw some returns at the start, which encouraged him to further engage in the business. His enticement evidently grew. The people involved in the scheme would frequently arrange Zoom meetings, promising more returns with increased investments. Kandel, who has recently turned 40, ended up personally investing around $10,000, equivalent to Rs 1,351,618, in the fund.

It didn't take long for the situation to turn sour: he was encouraged at the start but gradually found himself losing his savings to the scam. He also misled his downline members. Kandel reported that such scammers were now busy expanding their operations under the names of other online networks such as 'SBG Global', MMIT, V-TABS, V-LIFE, and so on.

Kandel, who is currently residing in the Maldives, shared in a virtual conversation that many victims were hesitant to speak up about the fraud for fear of being apprehended by the police for their involvement in the scam.

Similarly, Ranjana Shrestha, a Nepali nurse who has been living in the UK for over 18 years, suffered multiple setbacks - economic, mental, and social - after losing millions of rupees. She lost money from family members, friends, and colleagues to the business that turned into a disastrous scam. She was persuaded by a friend of her spouse to invest in the fund on August 5, 2021, believing in his sincerity. Unaware that it was a scam, she encouraged her family members in Nepal to invest as well, hoping for lucrative returns.

In addition, she also managed to convince her colleagues to invest, and due to her reputable standing, she recruited several people and downliners. Gradually, she persuaded more of her family members and relatives to invest with full trust. Whenever she checked the website, she felt reassured as she tallied her deposits, believing that she would be able to withdraw and use them at her convenience and need in the future.

However, she and her downliners have not withdrawn any of the investments they made. Struck with horror, she said she is part of a community that has also fallen victim to the scam and is hopeful for the support of Nepal Police to recover their investments. "Although the financial loss can be quantified, the emotional, psychological, and social impact is immeasurable," she shared her plight.

She and others in similar situations aim to raise awareness to prevent others from becoming victims of illegal financial schemes. Shrestha, in collaboration with her spouse, regularly attends meetings with other victims of this scam to ensure that those responsible are brought to justice. "I am dedicated to supporting all affected downline members and will be with them until achieving justice for all victims," she said.

Such stories of gullibility and playing Russian roulette do not cease. DB Thapa, who has experience of working at the civil engineering department for an airport in Dubai for 20 years, recently approached the Central Investigation Bureau (CIB) of Nepal Police with a complaint against the HyperFund operators. Thapa reportedly lost Rs 1.95 million, including his family members' investments, in the scam. He joined the scheme in August 2021 and realised that it was just a 'scam' after facing obstruction to access the withdrawal in April 2022.

The withdrawals were suspended and we (he was referring to his group members) realised that it was a scam. He said they told his group members their investments were safe till 2025 and the company was offering the biggest IPO.

He alleged that Nepali national Devi Pokhrel, also known as Roshan Pokhrel, was engaged in sharing with the Nepalis about the shedloads of income from the scheme and it was Lalit Kumar Neupane, one of the masterminds, behind duping the Nepali citizens. The UK-based networking business has its cabals globally. He accused the involvement of some other people such as Yogendra Milan Chhantyal and Kumar Gurung in luring and duping Nepalis.

Thapa estimated the total loss suffered by Nepalis globally to exceed Rs 700 billion, leading to significant mental, social, and economic shocks for the victims.

Victims coming together

People who have suffered at the hands of the HyperFund operators meet through Zoom meetings regularly, share their pains, and console each other with the determination to make the public aware of the scammers' machinations and business. Kandel says we need cooperation from the Nepal Police and Nepali media so that we can get justice. He wants the Nepal Police to check on all sorts of 'illegal transactions' from Nepal to other countries, which, as he argued, may be taking place in the form of legal online wallets.

Option for lodging complaint online

Spokesperson and Information Officer for the CIB of Nepal Police, Superintendent of Police (SP) Hobindra Bogati, said they have so far apprehended one person, Nanu Ghimire, also known as Kajal, from Lalitpur who is accused of orchestrating fraud under the guise of HyperFund. It has been reported that scammers would approach victims through Zoom meetings, luring them to invest just $1,000 with the promise of returning over Rs 300,000 or around $3,000) promptly in Nepal. The fraud is assisted by blockchain technology.

To date, the CIB has received complaints from 56 persons of fraud over $79,538,651.

SP Bogati said the website HyperFund would present high ratings by provoking people to like it more and more. He urged the alleged victims to visit the official website of CIB and lodge a complaint via the Gmail ID that is featured on its site. "The CIB has provided an online option for registering the complaint."

According to Bogati, though joining an illegal online business is an offence and punishable by law, the Nepal Police assures that they will not be treated as defendants. Understanding the circumstances, we have acknowledged that the alleged victims were duped into the scam and thus will not be held liable.

However, Nepal Rastra Bank, the central bank, has issued a statement mentioning clearly that all kinds of virtual currency, cryptocurrency including stablecoins, network marketing and HyperFund are illegal in Nepal, and any kind of transaction, use, involvement, membership, investment, ownership and mining are subject to legal action.

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