Dutch Student Arrested in Alleged Multi-Million Dollar Crypto Fraud

Source Beincrypto

A 24-year-old Dutch law student from Hengelo, Netherlands, has been arrested following allegations of running crypto scams that defrauded approximately 300 people out of €4.5 million ($4.6 million). 

The arrest came after a foundation representing the victims provided new evidence to authorities.

The Bull Market is Driving Crypto Scams and Frauds 

The student, who had been on the run since his trading scheme collapsed last year, initially sought police protection after being harassed by investors. Police relocated him to a secure location. 

However, investigators have since uncovered accusations that he continued to attract new investors even as his scheme neared failure.

Victims claim the law student operated a Ponzi scheme, using funds from new investors to pay earlier participants. He reportedly required a minimum investment of €5,000 and took 50% of the profits as a fee. 

Legal experts have raised concerns about the scale of the alleged fraud, which remains under active investigation.

Fraud and hacks in the cryptocurrency industry reached alarming levels in 2024. Losses totaled $2.3 billion, an increase of 40% compared to the previous year. 

losses from crypto scamsLosses from Crypto Scams From 2020 to Q2 2024. Source: The Motley Fool

Most concerningly, scammers are taking full advantage of the growing number of new investors drawn in by the bull market.

Several significant crypto scams have surfaced in recent months. For instance, the release of Netflix’s second season of Squid Game spurred the creation of fraudulent tokens referencing the show. 

Blockchain security firm PeckShield quickly flagged these tokens as scams, warning the public.

During the holiday season, hackers targeted users of Ledger, a popular cryptocurrency hardware wallet. Hundreds of users received phishing emails designed to steal recovery phrases. Meanwhile, several influential social media accounts on X (formerly Twitter) were hacked to promote fake tokens.

Also, AI-driven scams have increased significantly. Hong Kong authorities uncovered a deepfake crypto romance scam, leading to the arrest of 27 suspects accused of defrauding victims of $46 million.

The increasing frequency and sophistication of these crypto scams highlight the critical need for stronger proactive safeguards in the industry. 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Price Bounces Back—Can It Finally Break Resistance?Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
Author  NewsBTC
Apr 02, Wed
Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone. Bitcoin started a decent recovery wave above the $83,500
placeholder
U.S. March Nonfarm Payroll Preview: Even If Data Aligns with Expectations, Financial Markets May Not Escape the Fate of VolatilityOn 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
Author  TradingKey
Apr 02, Wed
On 4 April 2025, the United States will release its March Nonfarm Payrolls (NFP) data. The market consensus currently anticipates job growth of 128,000, a decline from February’s 151,000 (Figure 1). W
placeholder
Japanese Yen spikes to multi-week high against USD after Trump’s tariffs announcementThe Japanese Yen (JPY) jumped to a three-week top against its American counterpart during the Asian session on Thursday after US President Donald Trump imposed sweeping trade tariffs.
Author  FXStreet
Yesterday 02: 36
The Japanese Yen (JPY) jumped to a three-week top against its American counterpart during the Asian session on Thursday after US President Donald Trump imposed sweeping trade tariffs.
placeholder
Bitcoin price reacts as Gold sets fresh record highs after Trump’s reciprocal tariffs announcementBitcoin price plunges towards $82,000 as Gold soars past $3,150 after US President Donald Trump imposed new tariffs on Israel and UK, triggering global markets turbulence.
Author  FXStreet
Yesterday 02: 38
Bitcoin price plunges towards $82,000 as Gold soars past $3,150 after US President Donald Trump imposed new tariffs on Israel and UK, triggering global markets turbulence.
placeholder
Bitcoin Price Forecast: Tariff volatility sweeps over $200 billion from crypto marketsBitcoin (BTC) price hovers around $83,000 at the time of writing on Thursday after it failed to close above a critical resistance level the previous day.
Author  FXStreet
16 hours ago
Bitcoin (BTC) price hovers around $83,000 at the time of writing on Thursday after it failed to close above a critical resistance level the previous day.
goTop
quote