A Belgian citizen, 45, was arrested in Orihuela Costa by the National Police on a European arrest warrant issued by Belgian authorities. He was sought for his alleged involvement in a pyramid scheme in Belgium that defrauded investors of more than 24 million euros, with almost ten million routed through his accounts. The fugitive faced a maximum ten-year sentence for these offenses and was detained at his home in Orihuela Costa following the European arrest and delivery order.
The suspect, who was released provisionally after appearing before the National Court and receiving legal assistance, has been linked in Belgium to a criminal organization that defrauded investors out of more than 24 million euros.
According to Belgian court documents, the detainee in Orihuela Costa was an active member of the organization promoting between 2015 and 2018 a pyramid scheme marketed as investments in certain cryptocurrencies called nano coins, which were expected to yield large profits. Investors ultimately could not withdraw funds because the cryptocurrency wallets appeared blocked.
Cuentas en Noruega
The money invested by Belgian victims was channeled through accounts in Norway and then moved to accounts in Singapore and Hong Kong. Investigators found no real investment with the investors’ funds, and the victims did not receive any funds or products.
Belgian authorities note in the arrest warrant that the detainee led the Belgian-investigated company behind the pyramid scheme, handling more than 9.8 million euros through accounts where investors deposited funds. Investigations also indicate that a company based in Orihuela, owned by the detainee, holds several properties in Spain.
Investigators believe the victims’ funds later entered accounts in Singapore and Hong Kong after passing through Norwegian accounts, subsequently returning to the detainee in Orihuela Costa under the guise of consulting payments.
Separately, inquiries revealed that the scheme involved recruiting new participants who, in return, earned commissions in virtual currency, a common pattern in pyramid schemes.
Inversores
Belgian investors attended briefing sessions where they were encouraged to invest in cryptocurrencies. The alleged fraudsters claimed the money would fund various projects, such as drilling platforms or real estate, among others. In exchange for their input, investors were promised a share of project profits credited to their cryptocurrency accounts. However, investigations showed that after a period, the funds could not be withdrawn because the wallets were blocked.
It was also found that a bank card provided to investors to make purchases or withdraw cash did not work, or functioned poorly when it did.
Clients were informed in November 2017 of a change that prevented transfers from their virtual wallets and that the money would remain blocked for 310 days.
Denuncias
Victims were ultimately unable to recover their funds, and there are 58 reported cases of victim complaints before a Belgian court. These complaints indicate that payments made to buy cryptocurrencies were conducted through deposits into foreign accounts.
Most of the payments, according to the warrant issued by Belgian authorities, were made to accounts held by a Norwegian lawyer, from which more than 24.2 million euros were transferred from various Belgian accounts.
The accused pyramid fraud suspect detained in Orihuela Costa has lived in the province for several years. After his arrest, he was taken to the Provincial Police Station and later appeared before a court of the National Court via videoconference from the Alicante Justice Palace, where he was assisted by attorney Aitor Esteban Gallastegui and released on provisional freedom.
The case continues to unfold as authorities coordinate cross-border investigations to recover funds and pursue additional charges against those involved.