Hengelo cryptocurrency trader avoids prison in multi-million euro fraud case

A 25-year-old cryptocurrency trader from Hengelo, Netherlands, has avoided a prison sentence after the Public Prosecution Service (OM) decided to handle his case through a non-public hearing rather than a court trial. This procedure allows a prosecutor to impose a penalty, such as a fine or community service, without a judge. However, because the trader has declared both personal and business bankruptcy, financial sanctions may be ineffective.

The trader, who managed investments for approximately 300 primarily private clients, is accused of causing millions of euros to disappear. Some victims lost their entire life savings, with individual losses reaching tens of thousands of euros.

According to the bankruptcy trustee, Luc Stortelder, the total debt load is approaching 4 million euros. This includes nearly 3 million euros in claims from creditors and a recent claim of approximately 873,000 euros from the tax authorities. Investigations into the money flows revealed that funds were frequently moved between various cryptocurrency platforms and the trader's bank accounts. A hearing by the OM is scheduled for early September.