Dutch Student Suspected of Stealing €10 Million Through Cryptocurrency Pyramid Scheme
Date: 2024-01-14 Author: Dima Zakharov Categories: IN WORLD
In the Netherlands, a 23-year-old law student from the city of Hengelo is on the run, accused of masterminding a cryptocurrency pyramid scheme that has left investors in the lurch, with losses amounting to potentially €10 million. Over the course of two years, the young man managed his crypto bank, luring investments from his family, close associates, and local residents.
Reports indicate that he charged a minimum service fee of €5,000, pocketing 50% of the profits as payment for his services. Locals even began referring to him as the "crypto genius." However, on Wednesday, he sent an email to approximately 300 investors, regretfully informing them that he could no longer make payouts as he had lost all the invested funds, including his own money.
Dutch lawyers claim that private individuals who fell victim to the scam lost anywhere from €35,000 to €50,000 in cryptocurrency. One of the "crypto bank's" clients stated, "We suspect that approximately €4.5 to possibly €10 million has disappeared."
According to attorneys representing the victims, the law student paid early investors with funds obtained from new clients, which is a classic pyramid scheme tactic. A spokesperson for the Dutch "crypto genius" apologized on his behalf, stating in an email that he was in a "completely mentally unstable condition" and sought medical assistance. It has been reported that he deleted his accounts on Facebook and Instagram, canceled a planned trip to Turkey with his soccer club, and his house sits vacant.
The victims have contacted the police, but an official report has not yet been filed. Lawyers representing the victims are currently working on filing a lawsuit.
