A 45-year-old Belgian has been arrested in Orihuela Costa on charges of fraud and money laundering in connection with a €24 million pyramid scheme. The man, who faces up to ten years in prison, is accused of heading a criminal organization that defrauded Belgian investors between 2015 and 2018.
The Scheme
The Belgian authorities allege that the defendant lured investors into a fraudulent cryptocurrency investment scheme. Investors were promised high returns on their investments in “nano coins.” However, these nano coins were never actually invested, and investors were ultimately unable to withdraw their funds because their cryptocurrency wallets were blocked.
The Investigation
The investigation revealed that the money invested by the victims was channelled through a complex web of accounts in Norway, Singapore, and Hong Kong. None of the funds were ever invested as promised. Instead, investigators believe the money was deposited into accounts controlled by the defendant and his associates.
The Defendant
The man is believed to be the head of the Belgian company behind the pyramid scheme. According to the Belgian court, he collected over €9.8 million from investors through his companies. The investigation also suggests that he used much of this money to purchase real estate properties in Spain.
The Investors
Belgian investors were attracted to the scheme by promises of high returns on their investments. They were told that their money would be invested in various projects, but no such investments were ever made. Investors were also provided with a virtual bank card to access their funds. However, this card often malfunctioned or did not work at all.
The Aftermath
After realizing they had been defrauded, the victims filed complaints with the Belgian authorities. To date, there are 58 official complaints on record. The investigation is ongoing, but the victims are unlikely to recover their lost funds. Most of the money appears to have been transferred to accounts outside of Belgium, with a significant portion going to accounts held by a lawyer in Norway.
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