Dutch police have arrested Sam N., the Founder of Komodore64, a Blockchain Game Development Startup, who allegedly increased 78 million Euros ($86 million) from investors, as it has been reported by Sprout, a business-focused news outlet.
Komodore64, which has been launched in June 2019, with the objective to create a game platform where transactions are tracked on the blockchain, appeared to be a fraudulent scheme that deceived both investors and its own employees.
However, the project and K64, its native crypto coin, which has reportedly secured roughly $86 million in investments, has declared bankruptcy.
Sam N. allegedly lured investors by claiming that the project had increased funds from a “well-known investment company”, Goldman Sachs, an American investment management firm when a group of individuals impersonated a delegation from the investment firm.
🗞️NEWS🗞️ – Komodore64 goes bankrupt – Kamodore64 founder, Sam N. arrested – Max Theyse, the listed co-founder for Komodore64, pushed aside#crypto #cryptocurrencies #cryptonewshttps://t.co/Iig6dO2Z4E — The Daily Chain (@DailyChainNews) November 11, 2019
Likewise, the company’s employees claimed that the launch party cost tens of thousands of Euros. Neither the suppliers nor the employees received their bill. Komodore64’s employees filed for bankruptcy for the company.
Moreover, John Dullaart, the Curator of Komodore64, said that Max Theyse, who had previously been presented as the company’s Co-founder, never occupied that role.
“I think that N. presented him as such. The real co-founder is someone else. This person says he is surprised that the co-founder was someone other than himself.” John Dullaart
It has been analyzed that the police seized Sam at a hotel, where he had reportedly been staying because he felt threatened by angry cryptocurrency investors.
Komodore64, an announced gaming platform using $KMD, will have some problems now, as the CEO is seemingly arrested. And the 78$ million seems fake too. Weird, was in a podcast ones with him. Reminds me of what type of market this is. pic.twitter.com/4xKUhEuLSy — Crypto Michaël (@CryptoMichNL) November 11, 2019
Dutch Police vs. Cybercriminals
This summer, Europol, in conjunction with the Dutch police, United Kingdom’s South West Regional Cyber Crime Unit, Eurojust, and the U.K.’s National Crime Agency, coordinated the arrest of six people who were suspected of stealing over $27 million in cryptocurrency.
In May, Dutch police arrested Barry van Mourik, the former Entrepreneur, for fraud after he allegedly conned investors in a fake Bitcoin (BTC) mining operation out of €23 million ($25 million).
Thus, posing as the operator of a mining farm, van Mourik accrued client funds while allegedly failing to purchase any equipment, instead reportedly spending the money on luxury items.