The Netherlands police have arrested a 24-year-old law student over suspicion of operating a multi-million euro crypto scheme. The alleged crypto trader from Hengelo is suspected of defrauding nearly 300 investors, embezzling €4.5 million ($4.6 million). The accused was on the police dragnet last year after his crypto trading scheme collapsed. The self-identified ‘crypto banker’ went into hiding following harassment form investors, a local media Oost Nieuws, reported . Police spokeswoman Chantal Westerhoff confirmed the arrest early this week, the report noted. The Dutch police also conducted a raid at his residence on Monday. Upon further investigations, the judiciary revealed that there was an intent involved in the crypto scheme. The Crypto Investment Scheme Debacle The crypto scheme initially saw a lot of profits and the man was considered a crypto genius, the report read. Being a talented footballer himself, he also received large amount of money from dozens of footballers from the region. In 2024, the accused and his brother sent an email to almost 300 investors. To his great regret, he revealed that their entire investments in the scheme, including his own capital, had been lost. Following the debacle, hundreds of investors united at the Stichting Onderzoeks Collectief Hengelo to file a complaint against him, led by lawyer Arjon Tieman of Damsté and Partners. The police received a number of evidence from victims in the earlier weeks, leading to his arrest. One victim has claimed that the man continues to accumulate investors even after his investment scheme collapsed. As a result, lawyers have accused the student of running a crypto Ponzi scheme using funds from new investors to compensate to the earlier ones. The crypto scam required a minimum investment of €5,000 ($5,146), where he took 50% of the profits as fees. “The Hengelo man will be questioned extensively in the coming days,” the police confirmed. The post Police Arrest Dutch Law Student in Connection With $4.6M Crypto Investment Scheme appeared first on Cryptonews .
