$86 Million: Blockchain Game Startup Founder Arrested After Defrauding Investors

Francisco Memoria

The founder of a Dutch blockchain game startup has been arrested after reportedly defrauding investors, suppliers and employees.

The firm, Komodore64, was supposedly tracking the sales of in-game collectibles using the Komodo blockchain in games it developed. Since its launch in March of this year it claimed to have raised over €78 million (around $86 million) from private investors, including Goldman Sachs.

The Next Web reports the firm also raised funds through its cryptocurrency K64, with one investor saying they sent the firm $662,000. Soon, however, reports surfaced showing it failed to pay suppliers and employees. Komodore64 is even said to have even held a lavish launch party that cost thousands of euros, but never paid for the event itself.

Its founder, reported to be Sam Narain, allegedly defrauded investors by posing with a group acting as representatives from Goldman Sachs, to draw in more investors. Narain is said to have been arrested while staying at the Hilton hotel in The Hague, where he was staying to avoid “angry crypto investors.”

Narain’s arrest and connection to Komodore64 is reportedly yet to be confirmed, although previous reports seem to show he is indeed the person behind the blockchain game startup.

Featured image via Pixabay.