Dutch student arrested for alleged cryptocurrency fraud, defrauding €4.5 million!

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A 24-year-old law student from Hengelo, the Netherlands, was arrested on suspicion of cryptocurrency fraud, with the amount of fraud reaching €4.5 million (about $4.6 million) and involving about 300 victims. The police launched the operation after new evidence provided by the victims' foundation.

The student has been on the run since last year when his trading plan failed, and initially sought police protection due to harassment by investors. Despite the near failure of the plan, he continued to attract new investors. The investigation found that he operated a Ponzi scheme, using the funds of new investors to pay returns to early participants. Victims said that he required a minimum investment of €5,000 and charged 50% of the profits as fees.

In 2024, fraud and hacking in the cryptocurrency industry have reached an all-time high, with total losses reaching $2.3 billion, an increase of 40% from last year. Driven by the bull market, more and more new investors are attracted by fraud.

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Several major crypto scams have attracted attention recently. For example, the launch of the second season of "Squid Game" led to the emergence of fake coins related to it, and blockchain security company PeckShield quickly warned the public. Counterfeit tokens also appeared on social media, and multiple social accounts were hacked and promoted these fake currencies. In addition, hackers also launched phishing attacks against the popular crypto hardware wallet Ledger.

With the application of artificial intelligence technology, fraud methods are becoming increasingly sophisticated. Hong Kong police recently cracked a deep fake cryptocurrency love scam, in which the suspect defrauded 46 million US dollars and 27 suspects were arrested.

These incidents show that the cryptocurrency industry urgently needs to strengthen preventive measures to cope with the escalating risk of fraud.

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