Dutch Man Arrested for Bitcoin Mining Fraud Worth Over $2.2M

www.iamexpat.nl

A bitcoin mining fraud worth more than €2 million ($2.2 million) has led to the arrest of a 33-year-old man in the Netherlands.

Dutch tax authority’s investigative department, FIOD, revealed the news on May 21, stating that the accused was a director of two private limited firms where he hoodwinked roughly 100 people to purchase computers for mining bitcoins that he possibly never bought.

According to the department, the man is charged with forgery, money laundering, and fraud, saying that he purportedly spent investors money on luxury items like motorbikes, cars, gambling, and travel.

The suspect began his businesses in 2017 by assuring investors profit of roughly 0.3 bitcoin monthly (around $2,389 at present). Several investors filed a complaint when they did not receive the returns and their mining computers.

In November last year, the FIOD and police searched the home and business premises of the suspect, seizing expensive goods like shoes, bags, and a bike.

The FIOD stated that fighting money laundering is crucial since it is one of the “serious” crimes.

Dutch financial authorities, earlier this year, were considering a licensing scheme for cryptocurrency companies to avoid money laundering and terrorism financing. The country’s central bank, De Nederlandsche Bank (DNB), and the Netherlands Authority for the Financial Markets recommended that fiat-to-crypto exchanges and custody solution providers must be regulated as cryptocurrencies pose “high financial crime risks.”