According to PANews, a 24-year-old Dutch law student has been arrested by police on suspicion of operating a multi-million euro cryptocurrency scam. The individual disappeared last year after the collapse of his trading scheme, which resulted in losses of up to 4.5 million euros (approximately 4.6 million USD) for around 300 investors.
The student, who referred to himself as the 'Crypto Banker,' sought police protection and was placed in a secure location after being harassed by investors following the scheme's collapse. However, new evidence submitted by a foundation established by the victims led to his arrest this week. The foundation aims to trace the whereabouts of the lost funds.
Victims allege that the student continued to attract new investors even as the scheme neared collapse. Lawyers have accused him of running a Ponzi scheme, using funds from new investors to pay returns to earlier ones. He reportedly required a minimum investment of 5,000 euros and took 50% of the profits as compensation. The case is currently under further investigation.
