Crypto misappropriated for gambling
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26 Apr 2026 •
Reading time: 2 minutes
A court ruling in The Hague has revealed a worrying trend: funds intended for investment in cryptocurrencies have been used for online gambling.
Trust betrayed
It all began between January 2021 and May 2022. A man transferred more than €75,000 to an acquaintance to invest in cryptocurrencies. The management of the funds was entrusted to the recipient, who was tasked with purchasing and holding the digital assets in a joint wallet. For months, messages exchanged between the two men suggested that the investments were proceeding as planned. The manager even provided updates on the supposed amount of cryptocurrencies held.
In December 2024, everything changed. The manager announced that the funds were no longer available. The money had been used for personal purposes, including online gambling.
Beyond the financial loss, it was above all the lack of transparency that caught the court’s attention. By misappropriating these funds without informing their owner, the manager has breached a fundamental obligation.
The court’s view
Upon hearing the case, the court in The Hague leaves little room for doubt. The court finds that the defendant’s conduct is contrary to the agreements established between the two parties.
Even though the relationship was not a professional one, this does not alter the nature of the obligations. Using another person’s money for personal purposes, without authorisation or disclosure, constitutes a wrongful act. The court therefore concluded that the defendant had acted unlawfully.
A loss deemed credible, but difficult to quantify
Faced with this situation, the defendant repaid the full initial sum, with interest. However, according to the claimant, the real loss lies not only in the loss of the initial funds, but in the missed opportunity. Had the cryptocurrencies actually been purchased, their value could have increased significantly. He is therefore claiming over €238,000, an amount calculated on the basis of the hypothetical value of the digital assets he would have owned.
The court acknowledges that the claimant has suffered a loss. One factor stands out: a sale of 1.1 bitcoins, scheduled for 23 December 2024, could not be completed. The transaction would have yielded approximately €100,100. This point allows the judge to establish that the loss is real and not purely theoretical.
However, the court considers that the exact amount of the loss remains insufficiently substantiated. Fluctuations in the cryptocurrency market make any estimate complex. The case has been referred to a specific procedure designed to determine the precise amount of damages.
A conviction already recorded
Whilst the amount of damages has yet to be determined, there is no doubt as to the defendant’s liability. The court has not only found him liable for his conduct, but has also ordered him to pay the legal costs, amounting to €4,363.45.