Bitcoin

Dutch man arrested for bitcoin mining fraud

May 21, 2019, 11:13AM EDT

A 33-year-old man has been arrested for fraud, forgery and money laundering in the Netherlands, De Gelderlander writes. According to the report, he might have made as much as 2 million euro by running a bitcoin mining scam.

From 2017, the man ran two companies which offered bitcoin miners. He was supposed to run a mining farm, offering to pay customers a return of approximately 0.3 bitcoin per month. However, people allegedly never received their returns.

He also received as much as 100 million euro from 100 investors, but the computers reportedly never reached them. Further, the research carried out by the Tax Authority's investigative department FIOD and police shows the computers might have never been purchased at all.

Instead, the man allegedly spent the investors' money on luxuries like cars, motorbikes, travelling and gambling. 

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