Authorities in the Netherlands have arrested the perpetrator behind a major crypto pyramid scheme amid multiple complaints
The Dutch authorities have detained a 24-year-old crypto genius and law student from Hengelo, Netherlands. The detention was in connection to an alleged multi-million euro pyramid scheme. About 300 investors, including footballers, friends, and family, fell victim to the scheme, with losses running into €4.5 million.
Key Details About the Crypto Scam Bust
The Pyramid Scheme collapsed in 2024 after the accused had allegedly invested clients’ funds into risky bets. This resulted in a massive loss, but he kept this secret, only telling clients that the investment had gone bad.
Young Fraudster Arrested for $4.6 Million Crypto Scam Defrauding 300 Victims
A 24-year-old from the Netherlands has been arrested for allegedly scamming 300 individuals, including family, friends, and fellow soccer players, out of millions.
The man, falsely dubbed a “crypto… pic.twitter.com/5czvMNHEW9
— 🐶 Anh | Corgi Studio (@corgi408) January 9, 2025
Accompanied by his brother, they emailed about 300 clients, notifying them of his ordeal. This did not go down well with clients who immediately matched in their hundreds to the Stichting Onderzoeks Collectief in Hengelo. Famous lawyer Arjon Tieman led them from Damste law firm alongside partners.
As a skilled footballer, he lured in more European footballers to invest, as many saw him as a crypto genius with profits. These footballers joined other clients, as police authorities explained they had received multiple victim complaints.
Unfortunately, he went into hiding and continued floating investment Pyramid Schemes until his January 6, 2025 arrest. In one of his schemes, clients were required to invest around €5000, with a fee coming from 50% of profit yields. The yields from the new schemes were used to compensate previous investors.
He had been accused of tagging himself as a crypto banker while dealing with his new victims. This contributed to leads that helped in apprehending him. As part of the arrest, the police raided his house and found more evidence.
The police authorities have hinted that the culprit will be questioned further in the coming days for more uncoverings.
Industry Not Free Crypto Pyramid Schemes
Earlier in 2024, the US Securities and Exchange Commission (SEC) had engaged the FBI in a similar sting operation. This was directed at arresting 12 persons in connection to crypto scams.
Earlier reports revealed that in Q3 2024, there were about 155 incidents of crypto scams, with losses running into $750 million. The similarity in these scam stories is that victims failed to conduct adequate research before opting in.
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