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Mr. Krabs' had a family of pirates, and even had a pirated accent. So, since pirates originated in the seas off England, and particularly Wales, Mr. Krabs should be English (or Welsh). If you don't believe this, then I should also note that his first name, Eugene, is an English name. However, "Krab" is the correct Dutch spelling of the English word Crab.

So to note, Mr. Krabs should be a man of Dutch and Welsh descent.

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