Druk Holding and Investments (DHI), the investment arm of Bhutan, reportedly made millions of dollars worth of cryptocurrency investments secretly from the public, according to a report published by Forbes. DHI is an investment company that manages approximately $2.9 billion in funds. According to the report, DHI was a customer of the bankrupt BlockFi and Celsius. Celsius reported that DHI withdrew around $65 million and received almost $18 million worth of cryptocurrency.
The country of Bhutan;
Bhutan is a small country located in South Asia with a population of 763,000, and its economy is based on the agriculture and tourism sectors. In recent years, the Bhutanese government has taken various steps towards economic diversification and the development of the private sector.
However, BlockFi lawyers filed a complaint stating that DHI refused to repay a $30 million loan after liquidating 1,888 Bitcoins as collateral in March. DHI CEO Ujjwal Deep Dahal stated that the matter was confidential and that the issue with BlockFi had been resolved. Celsius and BlockFi were the second-largest bankruptcy filings in the crypto space in 2022.
DHI’s investment strategy and its foray into the cryptocurrency market are considered quite interesting steps for countries like Bhutan, which traditionally have limited resources for investment. However, the Bhutanese government has not yet made an official statement about DHI’s cryptocurrency investments.
Additionally, it is known that citizens frequently express concerns about the Bhutanese government’s lack of sufficient infrastructure regarding regulations on cryptocurrencies and blockchain technology.
In conclusion, while DHI’s cryptocurrency investments offer an opportunity for the Bhutanese economy, they also carry significant risks.