Dutch police have arrested a former entrepreneur for fraud after alleging he conned traders in a faux bitcoin (BTC) mining operation out of €100 million ($111 million), Dutch each day information outlet De Gelderlander reported on Might 21.
In keeping with stories, Barry van Mourik, who beforehand ran one other cryptocurrency firm additionally below suspicion, deceived shoppers into pondering they might earn cash from bitcoin mining.
Posing because the operator of a mining farm, van Mourik accrued shopper funds whereas allegedly failing to buy any tools, as an alternative reportedly spending the cash on luxurious objects.
The scandal involving the 33-year-old extends again to 2018, when annoyed clients of his different outfit, Koinz Buying and selling, launched a lawsuit after their advantages did not materialize.
Police raided van Mourik’s residence in November, seizing luxurious objects. Koinz Buying and selling was declared bankrupt in February this 12 months.
Now, it seems complete investments within the laptop elements wanted for mining topped €100 million, whereas van Mourik earned round €2 million ($2.2 million).
As Cointelegraph has reported, the cryptocurrency business stays topic to unhealthy actors focusing on unwary and inexperienced potential traders.
In February, a Thailand-based rip-off managed to lure 140 individuals to stump up funds which finally totalled round $1.34 million.
Giant scale scams past mining additionally persist, with Bulgarian OneCoin, rumored to have gained $four billion, solely coming to an finish in April. In the meantime, July will allegedly see the return of the infamous BitConnect Ponzi Scheme, which infamously crashed in January 2018.