Dutch police have arrested CEO for fraud after alleging he conned investors in a fake Bitcoin mining operation out of €100 million

Dutch police have arrested a former entrepreneur for fraud after alleging he conned investors in a fake bitcoin (BTC) mining operation out of €100 million ($111 million), Dutch daily news outlet De Gelderlander reported on May 21.

According to reports, Barry van Mourik, who previously ran another cryptocurrency company also under suspicion, deceived clients into thinking they would earn money from bitcoin mining.

Posing as the operator of a mining farm, van Mourik accrued client funds while allegedly failing to purchase any equipment, instead reportedly spending the money on luxury items.

The scandal involving the 33-year-old extends back to 2018, when frustrated customers of his other outfit, Koinz Trading, launched a lawsuit after their benefits failed to materialize.

Police raided van Mourik’s residence in November, seizing luxury items. Koinz Trading was declared bankrupt in February this year.

Now, it appears total investments in the computer components needed for mining topped €100 million, while van Mourik earned around €2 million ($2.2 million).

Also read: Major crypto exchange Bitfinex and its spin-off Ethfinex have launched a new IEO platform dubbed Tokinex

Source: https://cointelegraph.com/news/police-arrest-dutch-cryptocurrency-ceo-in-rumored-110-million-fraud-case