The Dutch Tax Authority’s Investigative department FIOD has arrested a 33-year-old man for bitcoin mining fraud worth over $2.2 million.
As the head of two private limited companies, he persuaded about 100 people to acquire computer technique for bitcoin mining, promising investors return of around 0.3 bitcoin a month. When the investors did not get the profit several of them filed complaints.
According to the investigation, the defendant allegedly spent investor money on luxury items such as cars, motorbikes, travel, and gambling. The man is accused of fraud, forgery, and money laundering.
Back in November 2018, police and the FIOD and raided the defendant’s home and business premises and seized expensive goods such as bags, shoes, and a bike.
Combating money-laundering is the priority for the Dutch government. Earlier this year, Dutch financial authorities were planning a licensing scheme for cryptocurrency firms to prevent money laundering and terrorism financing.