The Dutch Fiscal Intelligence and Investigation Service arrested two individuals amid an ongoing cryptocurrency money-laundering investigation
Last week, officials at the Dutch Fiscal Intelligence and Investigation Service (FIOD) announced the arrest of two men believed to be using cryptocurrency money-laundering.
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The million-dollar cryptocurrency money-laundering investigation leads to two arrests
According to an official statement published earlier this week, both individuals were arrested on Monday, February 17, as part of an investigation by the National Bureau of Serious Fraud environmental and property seizure (Functioneel Parket).
One of the people arrested, a 45-year-old Dutch citizen, was suspected of being involved in a money laundering of about 2.1 million euros ($ 2.26 million). According to the investigation, he made large purchases with a crypto credit card but did not report his income to the tax authorities. Moreover, he made many large cash withdrawals that could not be explained to the authorities.
According to Joint Chiefs of Global Tax Enforcement (J5) – an operating group formed between Australia, Canada, the Netherlands, the United Kingdom, and the United States – they have used the now-defunct bitcoin transaction mixer Bestmixer.io.
Crypto-mixing services tamper with various transactions to hide the source of funds, making it extremely difficult for investigators to determine whether the money is coming from illegal sources. However, Bestmixer.io’s website was shut down in May 2019 by the FIOD – with the support of Europol and Luxembourg authorities – in action. The organization’s first law enforcement action for cryptocurrency mixing services.
The notice stated:
“Based on the Bitcoin address used, the investigative team was able to identify the IP-address. The Bestmixer service was likely used to conceal and launder income. As part of this law enforcement action, digital and physical business accounts were seized.”
The Dutch government seized three kilograms of gold, 260,000 euros (about $ 280,000) of cryptocurrencies, a car, and other luxury items from him. Other detainees were also charged with laundering hundreds of thousands of dollars.
The report stated:
“The suspect made large purchases with a crypto credit card that could not be explained to the Dutch Tax and Customs Department based on his income and assets. He also made some significant draws with this card included 10,000 euros of cash. Some items that have been seized include three kilograms of gold, 260,000 euros in cryptocurrencies, debit, and credit cards with both cryptocurrencies and euros, one car, and luxury items like watches and other jewelry.”
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