When it comes to cryptocurrencies and mining, scams come in all shapes and forms. Netherlands authorities recently arrested a suspect who was in charge of a bitcoin mining investment scam.
According to the Dutch newsletter, the mining investment scam began way back in 2017. Since the operation was ongoing during the height of the bull market, the suspect Berry van Mourik managed to make over $2.2 million.
Van Mourik did very well to mask his mining investment scams. During the height of the bull run, the entire world was going crazy about crypto mining. Last year however, things quickly took a turn for the worse and mining simply wasn’t profitable in most cases.
The suspect was a very well respective senior executive of two companies. The companies sold bitcoin mining rigs and van Mourik offered his clients to take care of all mining operations. All investors were promised 0.3 bitcoin per month, which is roughly $2300 with today’s prices.
As it later turned out, investors never really got anything back. The mining rigs they purchased did not even exist in the first place. Van Mourik spent everything he got on his luxurious lifestyle. A lot of the money was spent on gambling, traveling and luxury vehicles.
The suspect’s home and office space got raided by Dutch authorities and a lot of his possessions were seized. Van Mourik’s mining investment scams are estimated to have over 100 victims. Unfortunately, the Dutch authorities did not take preventative measures after van Mourik’s mining company was declared bankrupt.
It’s hilarious that before the company went bankrupt, it was facing the same accusations as van Mourik today. The firm openly lured both Dutch and Belgian investors to buy bitcoin mining rigs.
Dutch bitcoin mining farm Koinz Trading declared bankrupt https://t.co/PSJhQINYtd
— Ikki (@ShadeStar81) February 16, 2018
The investors of course, never really got any of the rigs or the promised bitcoins. Telegraaf states that van Mourik demanded more than €3000 from each investor. When confronted by the investors, he showered them with a rain of excuses most often blaming his Chinese suppliers.
Hopefully, the Dutch authorities learn their lesson and put van Mourik behind bars before more people make use of his “mining services”.
A mining investment scam can be a lot scarier
As bold and as insolent van Mourik is, his little scheme is dwarfed by another mining scam perpetrated by the blockchain company Lianxin Tech in China. This mining scam saw people lose more than $300 million and was uncovered earlier this week by Chinese authorities.
Interestingly enough, this mining scam wasn’t centered around bitcoin. The mining machines were mining Filecoin and the CAI token of Lianxin Tech. Lianxin Tech sold over 300 000 mining rigs for $840 per unit.
Investors were informed that their investment would be returned within a maximum of two months. The CAI token also quickly rose from $0.072 to $0.20 and later to $0.29. Investors bought in and it later turned out that the token was listed on an exchange controlled by Lianxin Tech itself. One investor unraveled the scam by finding out the mining rigs were only generating CAI tokens instead of farming Filecoins.
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