Dutch Businessman Arrested For Bitcoin Miner Fraud

The Netherlands tax authority’s investigative department (FIOD) has arrested a businessman for bitcoin miner fraud worth more than €2 million ($2.2 million).

FIOD said its agents arrested the 33-year-old man, whose identity not disclosed, from Apeldoorn in the central province of Gelderland on Monday.

The man, who owned two private limited companies, launched a scheme to sell computers for mining bitcoins.

He offered investors a return of around 0.3 bitcoin, worth around $2,389 per month, for buying the bitcoin miners.

Investors filed complaints as they did not get the promised reward and their mining computers.

FIOD and Police raided the house and offices of the accused on November 21, 2018. They say the accused never had any bitcoin miners with him.

The businessman is estimated to have collected more than EUR2 million from around 100 investors.

He is suspected to have spent all the money he collected from the victims for buying cars and motorbikes, and for travel and gambling.

The man is accused of fraud, forgery and money laundering.

FIOD said in a press release that tackling money laundering is a priority for the Dutch government.

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