Two HyperFund promoters have been arrested in Nepal.

The Central Investigation Bureau made two arrests over the past week; Nanu Ghumire (aka Kajal) of Laitpur earlier in the week, and Srikant Bhandari of Rukum on Wednesday.

Nepal’s HyperFund arrests follows reports

that Nepalis globally have lost over Rs 700bn (~$5.2 billion USD), leading to significant mental, social, and economic distress among the victims.

Not to diminish HyperFund losses in Nepal but personally I think that estimate is a bit high.

Named ringleaders of HyperFund investors in Nepal are Devi Pokhrel (aka Roshan Pokhrel) and Lalit Kumar Neupane. Both remain at large.

So far CBI has received fifty-six complaints from HyperFund victims alleging $52,876 in losses.

Superintendent of Police Hobindra Bogati, spokesperson for the CIB of Nepal Police … urged victims to lodge complaints via the official CIB website, assuring that they will not be treated as defendants despite the illegal nature of the business.

HyperFund was part of the HyperTech group of Ponzi schemes. The scams were run by Ryan Xu and Sam Lee.

Lee and two HyperFund promoters were indicted back in January. The two promoters, US residents, have been arrested.

Lee (right), believed to be an Australian national, remains a fugitive hiding in Dubai.

It’s likely that Ryan Xu has also been indicted. Pending his arrest, Xu is also believed to be hiding in Dubai.

In addition to criminal charges, the SEC has also filed civil HyperFund fraud charges against Lee.