Bitcoin [BTC]: Dutch man dupes investors of $26 million after promising returns on Bitcoin mining rigs

Bitcoin mining is a lucrative activity. However, of late, it has also become the source for many associated criminal activities. An individual from Apeldoorn in the Netherlands was caught for money laundering after duping over 10 people who invested in his Bitcoin mining rig. He is accused of duping them to the tune of $26 million.

The accused, a man of 33, claimed to be the Director of two companies which sold Bitcoin mining rigs. The accused promised returns to the tune of 0.3 Bitcoins per month for each investment made. However, the investors failed to receive any promised Bitcoins on the Bitcoin mining computers they invested in. It is estimated that the accused earned close to 2 million euros from the mining, and the subsequent investor scam.

Research done by the Fiscal Information and Investigation Service revealed that the accused actually never purchased the mining machines and splurged the money on purchasing luxury items including cars, bikes, travel, and gambling.

One of his said companies, Koniz Trading, Lelystad had already been declared bankrupt last year after the accused was charged with fraud. The company was into buying and selling Bitcoins and also into offering access to mining machines. With access, anyone would have the capability to mine popular cryptocurrencies.

There has been a consistent rise in crypto-related crimes, resulting in a loss of about $34 million every year, according to a report. According to another report, there has also been a surge in illegal crypto-mining.

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