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Don’t let this happen to you! Police arrest blockchain startup founder who raised more than USD 80 million

The Netherlands police have arrested the founder of Komodore64, a blockchain game development company, which allegedly raised 78 million euros (USD 86 million) from investors, according to Sprout, a media outlet focused on Business, last November.

Komodore64, which was launched in June with the aim of creating a gaming platform that traces transactions in the blockchain, seemed to be a fraudulent plan that fooled investors and their own employees. The project and its native currency K64, which has reportedly secured about USD 86 million in investments, have been declared bankrupt.

Participation of a “renowned investment company”

Komodore64 founder Sam N. allegedly attracted investors claiming that the project had raised funds from a “well-known investment company,” the American investment management company Goldman Sachs, when, in fact, a group of people He posed as a delegation of the investment company.

The company’s employees said the launch party cost tens of thousands of euros, but neither the suppliers nor the employees received their bill. Komodore64 employees filed for bankruptcy on behalf of the company.

More deception and more angry crypto investors

In addition, the curator of Komodore64, John Dullaart, said Max Theyse, who had previously been presented as co-founder of the company, never held that position. “I think N. presented him as such. The true co-founder is another person. This person says he is surprised that the co-founder was someone other than himself,” Dullaart told Sprout.

Police arrested N. in a hotel, where he reportedly had been staying because he felt threatened by enraged cryptocurrency investors.

The Netherlands police against cyber criminals

This summer, Europol, together with the Netherlands police, the Cyber Crimes Regional Unit of the Southwest of the United Kingdom, Eurojust, and the National Crime Agency of the United Kingdom, coordinated the arrest of six people suspected of stealing more than USD 27 million in cryptocurrencies.

In May, the Netherlands police arrested former businessman Barry van Mourik for fraud after he allegedly scammed investors into a fake Bitcoin (BTC) mining operation worth 23 million euros (USD 25 million) . Posing as the operator of a mining farm, van Mourik accumulated client funds while allegedly not buying any equipment, but apparently spent the money on luxury items.

Also published on Medium.

Published inCryptocurrencies

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