TechFlow news, January 8 — According to Protos, Dutch police have arrested a 24-year-old law student suspected of running a cryptocurrency investment scam that caused approximately 300 investors to lose up to €4.5 million (about $4.9 million). RTV Oost reported that the suspect, from Hengelo and who called himself a "cryptocurrency banker," went into hiding after the scheme collapsed but was later arrested following new evidence submitted by a foundation established by affected investors.
The suspect required a minimum investment of €5,000 and took a 50% commission on profits. Despite being hailed as a "crypto genius," legal experts described the operation as a classic pyramid scheme, using funds from new investors to pay returns to earlier ones. Victims reported that even as the scheme neared collapse, the suspect continued recruiting new investors.
