Dutch Investigators Take Man Into Custody For Offering Non-Existent Bitcoin Mining Services
Dutch Investigators Take Man In Custody For Bitcoin Mining Fraud
Crypto popularity and adoption rates are increasing almost every day. Since the crypto space is decentralized, fraudsters and scammers see a golden opportunity to make some coin.
This is why crypto crimes are slowly prevailing within the sphere. Recently a crypto scam in the Netherlands has been gaining a lot of attention. Netherland is a hub of innovation, and it is not surprising to see a budding crypto community there.
The scam caused a damage of over twenty-six million dollars ($26 million). The scammer tricked over a hundred people into investing in fake or spoiler alert non-existent mining equipment.
The perpetrator identified as Berry van M pulled off the scams with a classic return on investment trap. He promised the investors of giving them a return on investment of two thousand three hundred dollars ($2,300) worth of crypto each month.
The investors realized it was a scam when the mining computers they invested in were nowhere to be found, and on top of that, they didn’t receive their share of returns.
Berry van M. made over two point two million dollars ($2.2 million) from this scam. The FIOD released a report regarding the scam. The report revealed that the bitcoin mining machines, on which the scam was based, never even existed. Berry van M. also spent the two point two million dollars ($2.2 million) he made on items like vehicles and gambling.
Berry van M. was part of two companies, one of them is called Koniz Trading. Koniz Trading used to deal in bitcoin mining and went bankrupt in 2018 due to fraud allegations.
The Financial Conduct Authority (FCA) of the United Kingdom released proper numbers of how much damage was caused through crypto scam since last year. The report stated that investors collectively lost over thirty-four million dollars from these scams in 2018.
It is indeed because of such cases that people dealing in legitimate businesses are having a hard time. Genesis Mining was a renown cloud mining firm, but it had to shut down some contracts because of the crypto eco-system.
This proves that crypto scams can occur anywhere at any time, and the investors should do their proper research to prevent themselves from becoming a victim of these crimes.