Netherlands Police Arrests Owner of Blockchain Company that Raised $80 Million

Netherlands Police arrests owner of Blockchain online gaming company after deceiving suppliers, investors, and employees. That led the company to bankruptcy.

12 November 2019, AtoZMarkets –Komodore64, the game’s startup, claimed to follow the sales of its in-game collectibles using the Komodo blockchain. It is launch in March. Since then it has claimed to have raised more than 78 million euros ($ 86 million) through private investment.

Other investments would also make in the associated cryptocurrency token, K64. In one case, an investor told that he had donated $ 600,000 ($ 662,000) to the gaming company. However, it fails to pay the suppliers and the salaries of the employees. Also, the company went bankrupt. What exactly happened to the money is not very clear.

Komodore64 Blockchain Company

The founder of Komodore64 is Sam Narain. He allegedly defrauded investors by saying that his company had obtained an investment from Goldman Sachs. That sounds wrong. Because Narain had a group that pretended to be investment bank representatives. And that had the means to fool other potential investors.

Also, Komodore64 would have organized a launch party. That would have cost thousands of euros. According to the report, the launch took place in one of the sites of its suppliers. It has not yet paid for the event. The company’s employees also claim they didn’t get payment “for months.” The UWV (Dutch Employee Insurance Agency) submits a claim for compensation to try to recover unpaid wages.

Narain was reportedly arrested during the past two weeks. At the time he was staying at the Hilton hotel in The Hague. Narain had stayed at the hotel to stay away from angry crypto investors. While it is inevitable that Narain was arrested because of his role in Komodore64 and his harmful activities.

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Netherlands police arrests several suspects Before

This summer, Europol, together with the Netherlands police, the UK’s South West Regional Cyber Crime Unit, Eurojust, and the UK’s National Crime Agency coordinated the arrest of six people suspected of stealing more $ 27 million in cryptocurrency.

In May, Netherlands police arrested former businessman Barry van Mourik for fraud. Because he defrauded investors in a false Bitcoin mining operation (BTC) for 23 million euros ($ 25 million). Acting as the operator of a mining farm, Mr. van Mourik accumulated the client’s funds. During the failed to purchase equipment and instead spent the money on luxury goods. Hopefully, Dutch Central Bank will regulate crypto exchanges in 2020.

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