Dutch police arrested three men for selling them a self-made cryptocurrency and then intentionally sinking its price

On May 20, a 39-year-old man from Deventer was arrested on suspicion of large-scale fraud using self-made cryptocurrency. The arrests resulted from an investigation of the cryptocurrency exchange Coinhouse.eu.

Dutch police arrest three in a pump-and-dump scheme involving self-made cryptocurrency

Dutch police have arrested three men in the industrial town of Deventer for trying to trick them into a homemade cryptocurrency and then deliberately reduced its price.

The 39-year-old suspect is said to have created his own cryptocurrency. The suspect then advertised the coin in the hope that people would want to invest. That happened on a crypto forum and via Twitter. Through this promotion, the man ensured that the token was purchased by a third party. He then sold too many tokens on his own in a short period of time making them worthless (a form of dumping).

Police charged these men with fraud and embezzlement and did not rule out additional arrests. They caught him in a Deventer warehouse where several computers were used for cryptocurrency mining and most likely theft of electricity.

The arrest stemmed from an investigation into cryptocurrency exchange Coinhouse.eu, where authorities were suspected of embezzling customers’ funds and defrauding them.

The 39-year-old is also suspected of trying to scam similar investors using the ERSO, MALC, EUROP, and TulipMania digital currencies. During the investigation, police seized a house, vehicle, computer, and cryptocurrency.

Disclaimer: Opinions expressed at AZCoin News are not investment advice. Investors should do their due diligence before making any high-risk investments in cryptocurrencies. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. AZCoin News does not recommend the buying or selling of any cryptocurrencies.

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