KATHMANDU, JANUARY 6

The Cyber Bureau of Nepal Police has arrested 11 individuals, including a Chinese national, for their alleged involvement in a large-scale online scam operated through the "SMC" mobile application, which targeted more than 70,000 people nationwide.

According to a press release issued by the Cyber Bureau, the accused operated under the guise of S.M.C.N. Advertising Service Center Pvt Ltd, based in Chitwan, and are accused of committing organised crime and electronic fraud.

Police said the scam resulted in financial losses amounting to approximately Rs 120.8 million (Rs 12,08,16,372). A total of 255 group complaints were filed, many members of the same family affected by the scheme.

Arrests across multiple locations

The arrested individuals include:

He Jiangjiang (37), a Chinese national, arrested from Hotel The Universal, Thamel; Milan Shrestha (21) of Ramechhap, arrested in Budhanilkantha; Saugat Thapa (19) of Tanahu, arrested in Mandikhatar; Bir Bahadur Tamang (33) of Nuwakot, arrested in Tarakeshwar; Sonam Khatun (23) of Chitwan, arrested in Butwal; Priya KC (23) of Tokha, Kathmandu; Monika Gurung (22) of Gulmi; Gita Gurung (21) of Dhading; Nasir Miya Ansari (37) of Parsa; Sayara Khatun (66) of Parsa; and Ram Niwas Prasad Kalwar (67) of Bara.

Several of the suspects were arrested from Kathmandu, Birgunj and Tarakeshwar, police said.

Ponzi-style operation

According to investigators, the group created a false appearance of legitimacy by producing fake company registration documents and claiming to operate from a physical office.

The suspects allegedly lured users by claiming partnerships with major international film companies such as Universal Pictures, Warner Bros and Disney, promising income for "watching movie trailers" through the SMC app.

Police said the operation followed a Ponzi and pyramid-style structure, offering commissions across three levels-12 percent (Level A), 4 percent (Level B) and 1 percent (Level C)-and falsely promising daily returns of 1.2 percent, citing fictitious investment funds such as "BlackRock".

The accused are being investigated under the Organised Crime Control Act, 2070 BS, and relevant provisions of the Criminal Code, 2074 BS, the Cyber Bureau said.

Nepal Police has urged the public to remain vigilant against online schemes promising unrealistic returns and to verify the legitimacy of digital investment platforms before engaging with them.