A Gelderland (called Guelders in English) residence, said to be the director of two firms, has been arrested for involving in a fraud amounting to 14000 Bitcoin.
The 33-year-old man from Apeldoorn, a city in the province of Gelderland in the centre of the Netherlands, was nabbed Monday for allegations bordering on money laundering, forgery and fraud.
High authorities in the municipal said he dubbed unsuspecting investors to the tune of 100 million Euros (around 14,000 Bitcoin at the time of writing).
The alleged scammer as published by De Gelderlander reports, faked people to invest in Bitcoin mining computers since 2017. Unfortunately, he did not purchase the said mining gadgets. The man directs two firms involved in selling Bitcoin mining computers.
He promised to help investors mine in his mining farm promising them around 0.3 bitcoin (around 2,000 Euros) every month.
However, he did not give them the said dividend, nor did he buy the mining gadgets, resulting in the investors reporting to the police.
As revealed by the Netherlands’ Tax Authority Investigative Department FIOD, nothing less than 100 investors dropped around 100 million euros into the man’s mining initiative, however, there is no indication he bought the said mining computer nor set up a mining firm.
The man was said to be junketing around the globe, gambling, while also buying luxury goods.
He was first raided by the Netherlands’ police and FIOD in November 2018 where his properties were seized.
Cryptocurrency fraud is rampant today, experts are raising alarm to get police alerted on possible scam projects to make sure people do not invest in fraudulent businesses in the crypto-sphere.
Few weeks back, hackers allegedly stole around 7,000 BTC on Binance, the largest exchange in the cryptoverse, however, effort is now ongoing to guard against possible future occurrence.