Netherlands Law Student Arrested Amid €4.5 Million Cryptocurrency Investment Fraud Scandal

“Crypto Genius” Dutch Law Student Arrested in €4.5 Million Cryptocurrency Investment Fraud

A 24-year-old law student from Hengelo, Netherlands has been arrested and charged with fraud and embezzlement for allegedly operating a €4.5 million cryptocurrency investment scheme that defrauded approximately 300 people through a Ponzi structure.

The suspect, who is also a professional soccer player, built a reputation among his peers as a “crypto genius” by claiming substantial profits from digital asset trading. To join the investment scheme, participants were required to make a minimum investment of €5,000 and pay a 50% fee on claimed profits.

As the scheme’s financial collapse became apparent, the suspect informed investors that he had made high-risk trades resulting in substantial losses. The situation escalated when some victims began harassing him, prompting him to seek police protection. Initially, law enforcement placed him in a secure location for his safety before continuing an investigation that revealed additional evidence of fraud.

The investigation discovered characteristics of a Ponzi scheme, where funds from new investors were allegedly used to pay returns to earlier participants. Dutch financial authorities have stated that the suspect operated without proper licensing or registration for investment services.

Many victims were drawn into the scheme through personal connections, creating a web of trust that extended through social and professional networks. The suspect’s dual status as a law student and soccer player helped establish credibility among potential investors, who viewed his educational background as a sign of legitimacy.

It is reported that the suspect maintained detailed records of investments and communications with clients, which are now being used as evidence in the case.

Source: blockonomi.com