A 24-year-old law student from Hengelo, the Netherlands, has been arrested in connection with a multi-million euro crypto investment scam.
The accused is suspected of defrauding nearly 300 investors, embezzling €4.5 million ($4.6 million).
Scheme Collapse and Investigation
The man, who self-identified as a ‘crypto banker,’ went into hiding after his scheme collapsed in 2024.
The scheme initially brought in substantial profits, earning him a reputation as a crypto genius. However, after the collapse, he was exposed for losing all the investments, including his own capital.
The Ponzi Scheme Allegations
Investors, including local footballers, were drawn to the scheme, which required a minimum investment of €5,000 ($5,146). He took 50% of the profits as fees.
Following the collapse, the accused allegedly continued to recruit new investors, leading to accusations of running a Ponzi scheme.
Legal Action and Arrest
After hundreds of investors filed complaints, the police received evidence that led to the student’s arrest.
A raid was conducted at his residence, and the judiciary confirmed there was intent behind the fraudulent scheme.
Ongoing Investigation
The law student is currently being questioned by the police, and further investigations are underway.
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