Spanish police successfully dismantled a massive Bitcoin-themed cryptocurrency pyramid scheme that scams more than 3,600 victims of about $32.6 million. The operation led by the Spanish National Police Force (CNP) has arrested eight individuals in multiple cities, including Malaga, Madrid and Melia.
A group of various experts, including marketing experts and web designers, has carried out a complex business that encourages fake Bitcoin investment plans for unsuspecting individuals.
Scam operators have made it easy for victims to convert large amounts, often hundreds or thousands of euros, into Bitcoin. Some victims were even manipulated to abandon control of their electronic devices, allowing fraudsters to perform cryptographic transfers and steal personal and bank information.
Increased threat of fraud
Police first learned of the plan in 2022 when the victim filed a complaint with Murcia, and the investigation revealed a fraudulent network in which new investors’ funds were used on older investors, a typical feature of the pyramid scheme.
The CNP discovered that the scammer promised an unrealistic return of 40% a month later, and up to 300% a year later. Investigators discovered a significant bitcoin holding in the criminal’s wallet and discovered a valueless token issued to investors.
The fraud has affected victims in 36 countries, with the majority of the victims living in Spain. In response, authorities frozen 73 bank accounts, seized vehicles, and locked in cash and computer equipment. This operation serves as a reminder of the risks of unregulated crypto investments and the growing threat of fraud in the industry.
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