A law student in the Netherlands arrested for involvement in a cryptocurrency fraud case, is taken into custody by police amidst a financial scandal.
Controversial Crypto Trader Arrested After Millions Disappear: Facing Fraud Charges
A highly controversial crypto trader from Hengelo has been arrested this afternoon by police after allegedly losing millions of euros through his speculative activities. The case has shaken a community of approximately 300 investors, many of whom have been severely impacted. The 24-year-old law student and skilled footballer often handled investments worth tens of thousands of euros for each client, but the money quickly vanished without a trace. Authorities now suspect that the losses were not accidental but part of a deliberate scheme. The Hengelo man is currently facing charges of fraud and embezzlement.
The total amount believed to have been lost ranges from 1.5 to 4.5 million euros.
Victims Notified of Arrest
Victims of the crypto investment scheme were informed about the arrest earlier today, according to sources within Oost Nieuws. Police spokesperson Chantal Westerhoff has confirmed the arrest and stated that the authorities believe the trader acted with intentional malice. He is facing a range of accusations, including fraud and embezzlement.
Alongside the arrest, a search was carried out at the man’s parents home. Before the situation unfolded, the man was reportedly living with his parents.
The Scandal Unfolds
Nearly a year ago, the scandal broke when the Hengelo man, who is studying law, had his brother send an email to nearly 300 clients. In the email, he expressed his deep regret and revealed that the entire invested amount, along with his own funds, had been lost.
Rising Star in Crypto
Known as a promising figure in the world of cryptocurrency, the trader initially experienced substantial profits, which led more and more people to entrust him with their money.
In addition to close family and friends, he attracted considerable sums from several local football players. The Hengelo man was also recognized as a gifted footballer, part of the roster for the HSC’21 team in Haaksbergen.
Group of Victims Takes Action
Following the collapse of his crypto trading operation, nearly a hundred victims banded together to form the Foundation Research Collective Hengelo, under the leadership of attorney Arjon Tieman from Damsté and Partners.
Piet Rutgers, president of the group, responded to the arrest: “While I haven’t been officially notified yet, I’ve heard the news through other sources. One of our board members texted me that he has received information from the police, and we have a scheduled online meeting this evening to discuss it further.”
Hiding After the Collapse
After the trader’s operation failed, he went into hiding earlier this year due to threats and harassment from victims. He was subsequently placed in a safe location in another part of the country with the cooperation of the police.
In recent weeks, the victims’ group has handed over significant evidence to the authorities, leading to today’s arrest. The man from Hengelo will now be questioned in detail in the coming days.
One key accusation from the victims is that the trader continued to bring in new clients even as his business was on the brink of collapse.
