Cryptocurrency fraud: Multiple arrests

The suspects appeared in an investigation of the crypto-trading site Coinhouse.eu. As the alleged owner of this trading venue, they are suspected of having embezzled customer funds and fraud. This investigation was conducted by the Financial Economic Crime Team in collaboration with the Cybercrime Team, the Digital Investigation Team and the IJsselland District Criminal Investigation Department. The investigation also included cooperation with the tax authorities.

Manipulation of cryptocurrencies

The 39-year-old suspect is said to have made his own cryptocurrencies (coins). The suspect then announced the coin in hopes that people would invest. It happened on a forum about cryptocurrencies and via Twitter. Through this campaign, the man ensured that coins were purchased by third parties (pump). He even sold so many coins in such a short time that they became worthless (dump). The goal of this is to earn as much as possible in the shortest possible time. Such actions are known as pump and dump. Organizers of such pumps and landfills have inside knowledge and can thus deliberately mislead the ignorant. The man from Deventer is suspected of having ‘pumped and dumped’ his coins called ERSO, MALC, EUROP and TulipMania in this way. Police are investigating his involvement in this.

Attack

During the investigation, various vehicles, a house, several computers and cryptocurrencies were seized.

QR scams

The man from Deventer is also suspected of QR fraud. People were contacted by telephone, allegedly on behalf of the bank, with the message that an international payment was ready, which could be stopped via a sent QR code. It was also sometimes said that the contact information for the bank account had been changed and it could be stopped with a QR code. The police investigation team has received several reports from victims who have transferred money via these QR codes. Police warn against scammers using this method. Such a code is also found, for example, in e-mails and letters that appear to come from a bank or other company. The accompanying QR code leads to a phishing site or payment site. Victims who share banking information such as login codes actually give cybercriminals access to the bank account.

Online dangers

More and more of our financial life is going on online, so do criminals. Criminals like to take advantage of new opportunities and people’s trust. The advice is always to be aware of links, codes or other ways to take you somewhere.

Investing in cryptocurrencies has been done more and more lately. It also ensures that malicious parties get involved. People who want to make quick money and leave the unsuspecting investor with the losses. Also in crypto trading, if an investment sounds too good to be true, it probably is.

  • Take a good look at what currency you are investing in and who you are trading with. Do not trust it when an unknown currency has risen in value in a short time
  • Paid advertising for an unknown cryptocurrency may indicate a pump
  • Do not believe in big profits that are promised too easily
  • The combination of time pressure and investing a lot of money is rarely a good combination
  • Private data is private, do not share it

Offer Coinhouse.eu

People who have made investments through Coinhouse.eu and think they have been scammed can report this via 0900-8844.

^ MvS / SV 2020532263

Cryptocurrency fraud: multiple convictions

Deventer, The Netherlands – On May 20, a 39-year-old man from Deventer was arrested on suspicion of large-scale fraud using self-produced cryptocurrency. Police are investigating the man’s involvement in several cases. A 22-year-old man from Apeldoorn has also been arrested on suspicion of fraud and embezzlement. A warehouse in Zaandam was searched and a 41-year-old man was arrested. The warehouse contained several computers that were used to extract cryptocurrency, and there was also a problem with electric theft. Further judgments are not excluded.

The suspects came to the attention of the police in an investigation of the cryptocurrency exchange platform Coinhouse.eu. As the presumed owner of this exchange platform, they are suspected of embezzling customer funds and of fraud. This study was conducted by the Financial Economic Crime team in collaboration with the Cybercrime team, the Digital Forensics team and the IJsselland District Crime Squad. Tax and Customs Administration have also collaborated in the investigation.

Manipulation of cryptocurrency

The 39-year-old suspect apparently made his own cryptocurrency (coins). The suspect then announced the cryptocurrency in hopes that people would invest. This happened on a cryptocurrency platform and via Twitter. As a result of this campaign, the man ensured that coins were purchased by third parties (pump). Then he personally sold so many coins in such a short time that they became worthless (dump). The goal was to earn as much as possible in the shortest possible time frame. Such actions are commonly known as pump and dump. Organizers of such pumps and landfills have inside knowledge and can use this to deliberately mislead unsuspecting investors. The man from Deventer is also suspected of ‘pumping and dumping’ his coins named ERSO, MALC, EUROP and TulipMania in this way. Police are investigating his involvement in this.

season

During the investigation, various vehicles, a house, several computers and cryptocurrencies were seized.

QR code scam

The Deventer man is also suspected of fraud with QR codes. People were contacted by telephone, allegedly on behalf of the bank, and informed that an international payment had been prepared, which could be stopped via a submitted QR code. Sometimes it was said that the contact information for the bank account had been changed and it could be stopped with a QR code. The police investigation team has received a few reports from victims who have transferred money via these QR codes. Police warn against scammers using this method. Such a code can, for example, also be found in e-mails and letters that appear to come from a bank or other company. The QR code you receive will lead to a phishing website or payment site. Victims who share banking information such as login codes actually give cybercriminals access to their bank account.

Online dangers

Our financial life increasingly involves being online, and so do criminals. Criminals like to take advantage of new opportunities and people’s trust. It is always advisable to pay attention when it comes to links, codes or other ways to guide you somewhere.

Recently, there has been increasing investment in cryptocurrencies. It also means that malicious people get involved in it. People who want to make money fast and leave the unsuspecting investor with the losses. If an investment sounds too good to be true, then it’s more than likely the case when it comes to dealing with cryptocurrencies.

  • Look closely at what currency you are investing in and with whom you are trading. Do not trust it if an unknown currency has shown huge increases in value in a short time
  • Paid advertising for an unknown cryptocurrency could identify a pump
  • Do not believe in big profits that are promised too easily
  • The combination of time pressure and investing a large sum of money is rarely a good combination
  • Private details are private, do not share them

Coinhouse.eu offer

People who have made investments through Coinhouse.eu and think they have been scammed can report this via 0900-8844 (from the Netherlands) or +31343578844 (internationally).

^ MvS / SV 2020532263

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