A 24-year-old Dutch law student has been arrested on suspicion of defrauding nearly 300 investors through a failed crypto trading scheme.

Police apprehended the man in Hengelo, Netherlands, following months of investigation into allegations of fraud and embezzlement tied to the disappearance of between €1.5 million and €4.5 million ($1.6 million to $4.6 million).

The unnamed trader, once celebrated as a “crypto genius,” allegedly convinced family, friends, and local footballers to invest in his trading operation, according to local outlet RTV Oost. 

He reportedly took a 50% cut of any profits as his fee. While his trades initially made gains, mounting losses ultimately caused the scheme to collapse.

The situation unraveled about a year ago when the trader informed clients via an email—sent by his brother—that their investments had been completely wiped out, according to RTV Oost.

The fraudster went into hiding 

After the fallout, the trader went into hiding following harassment from victims. He was later relocated to a safe house in coordination with police.

Despite his disappearance, victims banded together to form a foundation aimed at investigating the missing funds. Their efforts led to his arrest this week.

Authorities believe the trader may have planned his actions in advance and are investigating him for potential fraud, embezzlement, and other charges.

Allegedly, the fraudster was still taking clients while in hiding and while the company was falling apart.