Spanish authorities have successfully dismantled a Bitcoin-themed crypto pyramid scam that swindled victims out of an estimated $32.6 million. According to reports from the news agency EFE via Infobae, the police have cracked down on a criminal organization that promoted fraudulent cryptocurrency investments.
The operation led to the arrests of eight individuals involved in the scam, with fears that more than 3,600 people have fallen victim to the scheme. The National Police Corps (CNP)’s Economic and Financial Crime Unit identified the mastermind of the network as a computer programmer who was apprehended in Malaga. Additional arrests were made in Murcia and Madrid, targeting individuals from various nationalities and backgrounds, including marketing and web design experts.
The scam involved the creation of a seemingly legitimate platform offering Bitcoin investment plans that were promoted through various websites and social media platforms. Victims were lured in with promises of high returns on their investments without needing any prior knowledge of cryptocurrency. The scammers allegedly convinced victims to convert their money into Bitcoin and even gained access to their electronic devices to carry out unauthorized crypto transfers and steal personal information.
The police first became aware of the operation in 2022 when a victim filed a report in Murcia. Through their investigation, they uncovered a complex network of fraudulent investments where older investors were paid using funds from newer investors. When individuals attempted to withdraw their funds, the operators would create obstacles to delay or prevent the process. Some victims were enticed with promises of substantial returns ranging from 40% after one month to 300% after a year.
The fraudulent scheme extended to victims in as many as 36 countries, with thousands of individuals falling prey to the scam. The CNP estimates that at least 3,646 victims were affected, with the majority being Spanish residents. The scammers managed to accumulate a significant amount of Bitcoin, along with creating a worthless token to deceive investors. Both individuals and corporations were targeted in the elaborate scam.
In their crackdown, the authorities froze 73 bank accounts and seized assets including cars, motorcycles, computer equipment, and cash. The successful dismantling of this Bitcoin-themed crypto pyramid scam serves as a reminder of the importance of due diligence and caution when investing in cryptocurrency. The post highlights the vigilance of Spanish law enforcement in safeguarding citizens against fraudulent schemes in the digital asset space.