🌎 Dutch Law Student Arrested Over Crypto Scheme

Dutch Law Student Arrested for Alleged Crypto Trading Scheme

A 24-year-old Dutch law student has been apprehended by police in Hengelo, Netherlands, on suspicion of defrauding nearly 300 investors through a failed crypto trading scheme.

Following months of investigation, authorities estimate that between €1.5 million and €4.5 million ($1.6 million to $4.6 million) have gone missing, with allegations of fraud and embezzlement tied to the case.

How the Scheme Unraveled

The unnamed trader, initially celebrated as a “crypto genius,” allegedly convinced family, friends, and local footballers to invest in his trading operation. He reportedly took a 50% cut of any profits as his fee. While his trades initially generated gains, mounting losses ultimately caused the scheme to collapse.

The situation unraveled about a year ago when the trader informed clients via an email — sent by his brother — that their investments had been completely wiped out.

Investigation and Arrest

After the fallout, the trader went into hiding following harassment from victims. He was later relocated to a safe house in coordination with police.

Despite his disappearance, victims banded 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 are investigating him for potential fraud, embezzlement, and other charges.

Red Flags for Investors

This case highlights the importance of conducting thorough research and due diligence before investing in any crypto trading scheme. Some key red flags to watch out for include: