Dutch Police Arrest Two Over Fake EURC Stablecoin Used to Buy Rolex Watches

Authorities say counterfeit euro-pegged tokens were passed off as genuine EURC in luxury watch transactions

Dutch police have arrested two people suspected of running a scam that used fake versions of the EURC stablecoin to buy Rolex watches, according to reports from U.Today and crypto.news. The suspects allegedly presented counterfeit tokens as genuine EURC, Circle's euro-pegged stablecoin, to pay for luxury watches from sellers who believed they were receiving real digital currency.

EURC is designed to maintain a one-to-one value with the euro and is backed by reserves held by Circle, the same company behind the widely used USDC stablecoin. Legitimate stablecoins like EURC rely on issuer transparency and blockchain verification to assure holders that tokens can be redeemed at face value. A counterfeit token mimicking EURC's branding or ticker symbol would carry none of those guarantees.

The scheme reportedly exploited a gap in verification during transactions. Sellers accepting cryptocurrency for high-value goods often check that a payment has arrived on-chain, but may not always confirm the token's contract address matches the official EURC issuance. Scammers can create tokens with identical names or symbols on the same blockchain, hoping buyers or sellers overlook the distinction.

Luxury watches, particularly Rolex models, have become a recurring target in cryptocurrency-related fraud. Their high resale value and relative liquidity make them attractive to criminals looking to convert illicit gains into tangible assets. Watch sellers who accept crypto payments face added risk because blockchain transactions are irreversible once confirmed.

Dutch authorities have not disclosed the full scale of the losses tied to this case. Details about how many transactions were involved, the total value of watches obtained, or the specific blockchain used for the fake tokens have not been made public. The investigation appears to be ongoing following the arrests.

The case adds to a growing list of incidents where counterfeit or spoofed tokens have been used to defraud sellers of goods and services. Circle has previously warned users to verify official contract addresses before accepting EURC or USDC as payment, though enforcement of such warnings ultimately depends on individual diligence at the point of transaction.

Market Impact

This incident is unlikely to affect EURC's market value directly, since the fraud involved counterfeit tokens rather than the genuine asset. It does, however, highlight persistent risks around token verification in peer-to-peer crypto transactions, particularly for high-value physical goods. Merchants and private sellers accepting stablecoins as payment may face renewed pressure to adopt stricter on-chain verification tools before completing sales.

The case could also draw further attention from regulators and stablecoin issuers toward anti-fraud measures, including clearer public tools for confirming official contract addresses. For the broader stablecoin market, such incidents reinforce the importance of transparency and traceability as adoption in retail and luxury goods transactions continues to grow.

The arrests underscore how counterfeit tokens can undermine trust in legitimate stablecoins even when the underlying asset itself remains unaffected. As crypto payments spread into luxury retail, verifying token authenticity remains essential for sellers.

Frequently Asked Questions

What is EURC?

EURC is a euro-pegged stablecoin issued by Circle, the company also behind the USDC stablecoin. It is designed to maintain a one-to-one value with the euro.

How were the fake tokens used in this scam?

According to reports, suspects allegedly created or used counterfeit tokens resembling EURC to pay for Rolex watches, deceiving sellers into believing they had received genuine, redeemable stablecoins.

Were the suspects charged with a specific crime?

Reports indicate Dutch police made arrests in connection with the scheme, but full details on formal charges have not been publicly disclosed.

Does this scam affect the actual value of EURC?

No. The scam involved counterfeit tokens designed to mimic EURC, not the genuine asset issued by Circle, so its market value is not directly impacted.

How can sellers avoid similar scams involving stablecoins?

Sellers can protect themselves by verifying the official contract address of a stablecoin on the blockchain before accepting it as payment, rather than relying solely on the token's displayed name or symbol.