A 33-year-old resident of Apeldoorn is facing charges related to fraud, forgery and money laundering after he was arrested on Monday. Authorities reveal that he earned over 26 million Euros by fraudulently convincing people to join a Bitcoin mining business. Despite receiving money from investors, authorities claim that Berry did not buy mining computers instead he squandered the money.
How the Fraud Scheme was Executed
Berry Van M directed two companies from 2017 where Bitcoin Enthusiasts could buy Bitcoin mining computers. The two companies would manage the computes in a ‘mining farm’ and award each investor 0.3 Bitcoins per month (approximately 2,000 Euros). The scam became evident when investors did not receive the promised amount or mining computers, they had invested in. Complaints were filed with the police.
How Much Was Invested and Where did it Go?
Tax Authority Investigative Department (FIOD) reveals that approximately 100 people invested approximately 100 million Euros into Berry’s ‘mining firm’. Investigators believe that Berry never bought the mining computers. Berry spent the invested money on cars, motorcycles, traveling, gambling and other luxuries.
In a November 2018 police and FIOD joint raid to Berry’s home and business grounds, luxuries like shoes, bags and a dirt bike were confiscated. One of Berry’s mining farms in Lelystad was declared bankrupt in February following investors fraud complaints and demands for compensation.
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