In the Netherlands, a 24-year-old law student from Hengelo has been arrested for allegedly running a Ponzi scheme involving cryptocurrency. According to local media, his actions caused around 300 people to lose a total of €4.5 million.
The scheme, which the student began in 2024, involved soliciting funds from investors with promises of high returns. However, over time, the young man claimed that all the money was lost and then disappeared. Victims included his friends, relatives, and even local football players.
From Crypto Genius to Suspect
At the outset, investors believed the student was a successful trader capable of generating significant profits. He offered investment opportunities starting at €5,000 (~$5,150) and charged a 50% commission on profits. However, this period of apparent success was short-lived, and the entire scheme eventually collapsed.
The student remained in hiding for nearly a year but was forced to contact the police after receiving threats from victims. While law enforcement provided him with protection, the investigation revealed that he had orchestrated the Ponzi scheme himself.
Impact on the Industry
This case in the Netherlands highlights the rising crime rate within the crypto industry. In 2024 alone, losses from fraud and hacking reached $2.3 billion — a 40% increase compared to the previous year. Experts note that cybercriminals are exploiting the interest of new investors drawn to the bull market.
