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Crypto Users From the Netherlands Arrested On Money Laundering Charges

February 24, 2020
Ross Peili


Crypto Users From the Netherlands Arrested On Money Laundering Charges

On February 17th the Dutch Fiscal Intelligence and Investigations Service (FIOD) proceeded in the arrest of two men linked to a series of investigations targeting suspicious monetary transaction activity involving crypto. 

According to the IRS, both investigations were led by the National Office for Serious Fraud, Environmental Crime, and Asset Confiscation, who categorized both criminal activities like money laundering.  

In the first case, we have a 45-years-old male from Noordwijk who was arrested for allegedly laundering over 2.1mn worth of Euros using various cryptocurrencies. The previously suspect made large transactions using his crypto credit card in sums the Dutch Tax and Customs Administration could not explain based on his income and registered assets.  

He was caught when made a withdrawal of 10,000 euros in cash using his crypto card, while the investigation led to the confiscation of three kilograms of gold, 260k worth of cryptocurrencies, various debit and credit cards leeching euro and crypto accounts, a car and other luxury items and accessories, all found in his residence. 

On the other side of the cell, we find a 31-years-old man from Groningen who is suspected of laundering nearly 100k euros using, essentially a masking service for those trying to avoid blockchain transparency and tracking. 

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Nevertheless, the investigators managed to link his Bitcoin wallet to a series of masked IPs used by the Bestmixer service, and both his digital and physical accounts were immediately seized. 

Is Crypto as decentralized as we think?

Now I am not supporting money laundering, but in both cases, we see the abuse of the centralized authoritarian regime when it comes to personal digital assets such as cryptocurrencies, which are supposed to be outside the reach of centralized power-brokers. 

I mean what is the purpose of using cryptocurrencies if, in the end, they have to be taxed, most of the time with higher rates than traditional assets, and in case you try to avoid it or simply you’re not aware of the process you could end up in jail. 

Cryptocurrencies were supposed to an alternative to traditional monetary systems with their own value and operational protocols, yet they are subjected to fiat currency pricing, fiat currency manipulators are overseeing cryptocurrencies and treat them similar to fiat currencies when it comes to utility functions. 

Sure, there are projects like Monero (XMR) and ZCash (ZEC), that offer some sort of anonymity and/or pseudonymity in the crypto domain, but I don’t want to use anonymous crypto when all cryptos are supposed to be detached from the traditional financial system.  

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Although we have a series of laws and regulations adopted and promoted by many top-shelf countries, not all of them are clear and most typical accountants and lawyers are not even aware of what cryptos are nowadays, so my question is how a typical crypto user like myself or you can keep using their cryptos without being suddenly jailed for nonsense?

Let me know your thoughts in the comments below, or hit me on Twitter