The Bhutanese Leading the way.
The Competition and Consumer Affairs Authority (CCAA) has found that Sandeep Rai Chamling engaged in Unfair Trade Practices, according to its report reviewed by the Internal Review Committee.
Not only did Sandeep not have a licence for his crypto mentoring and trading business, he also failed to provide the promised services, according to CCAA findings.
Sandeep owned Pandorzbiz.com, an e-commerce platform that is not authorised to carry out such a business.
A CCAA official said that so far 64 people have approached the Authority for refunds amounting to Nu 319,454.
The official said all of them will get their refunds as long as they can provide screenshots and proof of payment, as Sandeep never issued invoices or bills.
The CCAA will release its report once the police share theirs with the CCAA and file charges against Sandeep. The CCAA is waiting for the RBP report, as it anticipates that the findings above will also be reflected in the police report.
Meanwhile, the main whistleblower, Kezang Choden (44), said she does not understand why the CCAA has to wait for the police action or report, as the police do not handle refunds and the CCAA is an authority with its own mandate and powers.
She said she hopes the CCAA, based on its own investigation, can take action and process the repayments.
The investigation by the South Thimphu Police is in its final stages, and according to a source, more than 100 victims have either come forward or been contacted by the police regarding the case. The police have said more victims may come forward if they wish.
Most complaints are similar, Sandeep promised to teach trading and cryptocurrency skills but failed to deliver after taking their money.
While Sandeep was released on bail around three weeks ago, his phones and devices remain with the RBP. He was detained in the last week of October.
As reported earlier, the RBP has already established deceptive practices including failure to deliver promised services, crypto-based online gambling through FreeBitco.in where users are encouraged to earn bitcoins through gambling-type games, and from which he earned commissions, and fronting and tax evasion.
The RBP said they are also looking into money laundering, specifically where he invested the money he collected.
The tax evasion part is taking time as the RBP has sought information from the Department of Revenue and Customs (DRC) to determine how much tax was avoided. The RBP has also reviewed his bank statements and transactions.
The challenge is that Sandeep did not issue invoices, so the DRC will need to examine bank statements accessed by the police and possibly obtain further information or statements.
Over the years, thousands of people joined his various groups, and so the revenue may be substantial.
Given the charges and scale of the case, the RBP will not prosecute it directly; it will be forwarded to the Office of the Attorney General (OAG) for framing charges and prosecution.
The RBP has sought the assistance of the Financial Intelligence Department under the RMA to track where Sandeep sent money. A large amount was sent to India through banking channels, and he also transferred funds through SWIFT.
He also holds digital currency in his crypto wallets, but the full extent of the funds is still under investigation.
More victims come forward
Tshering (26) said, “I was scammed of Nu 9,039. It has affected me deeply because I run a small business and depend on every amount I earn. Losing this money has created a big financial burden for me. It disturbed my daily business operations, caused stress, and put me under a lot of pressure. I trusted the system, and this scam has really shaken me. I hope proper action is taken so no one else goes through this.”
Tenzin (29) said, “After I made the payment for PandoraBiz trading mentorship, I asked him (Sandeep) some doubts and for guidance, but all I got was scolding and defamatory remarks.”
Tenzin said he lodged a complaint not only to get a refund but to prevent other innocent Bhutanese from facing the same fate.
“During that time, he told us it was his last intake for mentorship and that he would focus on guiding us. But later, he was fully driven by money, I guess, and I saw him announcing another intake, which concerned me that others might fall into the same trap. So, I request the concerned authority to take action and stop these practices. I personally feel great when I see the authorities taking action.”
Karma (22) said, “Many of us were deceived by his words, and he didn’t even give us the USD 10 he promised. Forget USD 10, which is very little compared to our fees—we couldn’t get any service from him. He was not like this before we paid the SRC fees.”
Karma said that when he went through the mentees in the group, many were illiterate and could not understand the teachings, which required strong IT knowledge.
He said many innocent people are afraid to speak up or are struggling to file complaints.
Karma added, “He made it sound so easy to earn without investment in his videos, and thousands of us believed him. We were so eager that we even started counting down the days to registration.”
Karma said that if there had been proper checks like eligibility criteria or qualifications, many people would not have fallen into his trap.
“As someone from a middle-class background, Nu 6,262 could help us survive for one or two months in terms of bills and rent. We would be very thankful if we could get refunded since we did not earn a single Ngultrum from his mentorship.”
Background
Sandeep and his company aggressively contacted people through social media, direct messages, and phone calls, promising to teach them trading and how to earn cryptocurrency for a fee. However, once they paid and joined, they could not learn anything as the focus was on recruiting more new members.
He made flashy videos and bold claims online about earning large amounts from trading, but a closer review by this paper found many flaws in the supposed trading videos.
Over the years, Sandeep created several crypto trading mentorship groups with fees ranging from Nu 2,777 to Nu 6,000, with the latest being Nu 6,262. His victims say he has duped thousands of people who did not receive the promised services.
Sandeep exploited the rising popularity of crypto in Bhutan and used Facebook and TikTok to market his mentorship programmes and himself.
He and his team aggressively contacted people through these platforms with promises of easy money through “crypto trading.”
He frequently posted videos claiming to earn hundreds of dollars a day through crypto trading, along with inspirational quotes about making money. This gave an illusion of legitimacy and misled many people.
In November 2023, the CCAA first came across Pandorzbiz.com offering online crypto mentorship classes where people paid between Nu 2,777 and Nu 6,000 and were introduced to FreeBitco.in (later found to be an online gambling platform).
The CCAA referred the matter to the Bhutan Qualifications and Professional Certification Authority (BQPCA), as Sandeep’s company was offering training without authorisation.
In February 2024, the BQPCA issued a notification advising the public not to undertake such training, and Sandeep was told to stop offering them.
Sandeep, however, continued, and when the BQPCA caught him again, he was fined Nu 10,000 and required to pay tax on the earnings at the time.
Matters did not end there, and Sandeep launched the “SRC Mentorship Plan,” collecting thousands from many people and promising to teach crypto trading and earning cryptocurrency through FreeBitco.in.
