Dutch authorities have arrested a 24-year-old law student in Hengelo following an extensive investigation into a cryptocurrency trading scheme that allegedly defrauded nearly 300 investors of millions of euros.
The suspect, who gained local fame as a supposed "crypto genius," is accused of orchestrating a fraudulent operation that collected between €1.5 million and €4.5 million from investors, including family members, friends, and professional football players.
According to investigators, the student offered a trading service where he would manage cryptocurrency investments while taking a 50% commission on profits. While initial trades showed positive returns, the scheme eventually collapsed with devastating losses.
The situation came to light approximately one year ago when investors received an email from the suspect's brother announcing that their entire investments had been lost. Following threats from angry victims, the trader went into hiding and was temporarily placed in a police-coordinated safe house.
In response to the losses, affected investors formed an organized group to track the missing funds, ultimately leading to this week's arrest. Police reports suggest the suspect may have deliberately planned the deception and continued accepting new clients even as the company was collapsing.
Law enforcement officials are pursuing multiple charges, including fraud and embezzlement. The case has shocked the local community, particularly given the suspect's background in legal studies and his exploitation of personal connections.
The investigation remains ongoing as authorities work to trace the missing funds and determine the full scope of the alleged fraud.