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

Police arrested the man in Hengelo, Netherlands, after months of investigating allegations of fraud and embezzlement linked 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 “cryptocurrency genius,” allegedly convinced family, friends and local footballers to invest in his trading operation. According to To the local outlet RTV Oost.

He reportedly took a 50% cut of all profits as his fees. While his trades initially generated gains, mounting losses eventually caused the scheme to collapse.

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

The impostor hid

After the fallout, the dealer went into hiding after harassing the victims. He was later transferred to a safe house in coordination with the police.

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

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

The fraudster was allegedly still taking clients while he was in hiding and while the company was collapsing.