A 24-year-old Dutch law student has been arrested on suspicion of defrauding nearly 300 investors through a failed cryptocurrency trading scheme.
Authorities apprehended the suspect in Hengelo, Netherlands, following an extensive investigation into allegations of fraud and embezzlement linked to the disappearance of funds totaling between €1.5 million and €4.5 million ($1.6 million to $4.6 million).
The trader, once hailed as a “crypto genius,” allegedly persuaded family, friends, and local football players to invest in his trading operation. Reports indicate that he took a 50% cut of any profits earned. Although his trades initially yielded gains, significant losses eventually led to the scheme’s downfall.
The situation began to unravel approximately one year ago when clients were notified via an email—sent by his brother—that their investments had been entirely wiped out.
Trader Goes Into Hiding
Following the collapse, the suspect fled in response to harassment from victims and was later moved to a safe house in collaboration with law enforcement.
Despite being in hiding, victims united to form a foundation dedicated to investigating the missing funds. Their collective efforts culminated in his arrest this week.
Authorities suspect that the individual may have premeditated his fraudulent actions and are currently investigating him for potential fraud, embezzlement, and other related charges.
It has also been alleged that the fraudster continued taking on clients while in hiding, even as his company was deteriorating.
