Dutch law student arrested for multi-million crypto fraud

A 24-year-old Dutch law student has been arrested on suspicion of defrauding nearly 300 investors through a failed crypto trading scheme.

Police arrested the man in Hengelo, Netherlands, after a months-long investigation into allegations of fraud and embezzlement linked to the disappearance of between 1.5 million and 4.5 million euros ($1.6 million and $4.6 million).

The anonymous trader, once referred to as a “crypto genius,” allegedly convinced family, friends and local football players to invest in his trading operation, according to local broadcaster RTV Oost.

He reportedly received 50% of the profits as his fee. While his trades initially produced profits, mounting losses ultimately led to the collapse of the scheme.

According to RTV Oost, the situation arose about a year ago when the trader informed customers via an email sent by his brother that their investments had been completely wiped out.

The fraudster went into hiding

After the incident, the merchant went into hiding after being harassed by the victims. He was later placed in a safe house in coordination with the police.

Despite his disappearance, the victims came together to form a foundation aimed at investigating the missing funds. Their efforts led to his arrest this week.

Authorities believe the trader may have planned his actions in advance and may be investigating him for possible fraud, embezzlement and other charges.

The scammer was allegedly still taking clients while hiding out as the company disbanded.