A case has been filed against the Managing Director of Nagad, along with 23 others, in connection with a money fraud scheme. The case, lodged with local authorities, accuses them of embezzling substantial amounts through fraudulent activities within the mobile financial service sector.

Motijheel Police Station Officer-in-Charge (OC) Mejbah Uddin said that Bangladesh Bank filed a case against ‘Nagad’ with Motijheel police on Friday.

Sarkar Mohammad Amir Khasru, joint director of Bangladesh Bank’s Payment Systems Department filed the case on behalf of the central bank. "Nagad has committed financial fraud and created additional electronic money (e-money) by showing fake distributors and agents", said a central bank official..

According to police, it was known initially that the Nagad Management and Control Committee formed by Bangladesh Bank had received a complaint of major fraud in ‘Nagad’. 

Nagad, a mobile financial service launched in 2019, has been a subject of controversy since its inception. Despite operating without direct permission from the central bank, it has rapidly expanded its user base, becoming one of the most prominent digital payment platforms in Bangladesh. 

However, Nagad has faced multiple allegations of violating regulatory norms, including incidents of fraud, data breaches, and lack of transparency in its financial operations. These issues have sparked heated debates within the financial industry, raising questions about the accountability of mobile financial services operating outside the oversight of the Bangladesh Bank.

The latest case adds to a growing list of legal challenges for Nagad, further intensifying scrutiny of the company's operations and regulatory practices.