Categories: Market

The Dutch police arrest three people in the “pump and dump” scheme of a junk coin

The Dutch police arrested three men in a community in Deventer for defrauding investors by selling them a homemade junk coin and then manipulating the price.

Deventer City, where the incident took place

The prosecution charged these men with fraud and embezzlement and did not rule out additional measures.

“The police arrested one of the men on this team in a warehouse in Deventer where several computers were used to mine cryptocurrencies and they were also suspected of stealing electricity.” Press release This was announced by the Dutch police.

The arrest came after an investigation by the Coinhouse.eu cryptocurrency exchange, in which authorities suspected its owner of misappropriating funds and defrauding customers.

In what the authorities call a pump-and-dump scheme, a 39-year-old man created the token himself and advertised it on social media such as Facebook and Twitter, attracting investor interest and driving up the price. Then suddenly he released a large amount of tokens that made them worthless. Investors were confused about the peak swing.

The Dutch police describe the fraud group’s pump-and-dump program

The 39-year-old is also suspected of trying to scam similar investors with self-created tokens called ERSO, MALC, EUROP and TulipMania, the police added.

During the investigation, the police confiscated a house, a vehicle, a computer and other valuable cryptocurrencies.

Thach Sanh

According to Coindesk

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