The Spanish National Police have taken down a criminal network that ran a pyramid scheme disguised as a cryptocurrency investment.
Authorities estimate that more than 3,600 people—most of them in Spain—were scammed out of €30 million. The operation has led to the arrest of eight individuals believed to be behind the fraudulent scheme, according to a local media report.
Spanish Police Dismantle €30 Million Crypto Pyramid Scam
After nearly three years of investigation, the police uncovered a massive scam that promised high returns on Bitcoin investments. Victims were lured in with offers of 40% monthly profits and 300% annual returns.
But instead of real investments, the scheme relied on new deposits to pay initial investors—an unsustainable system that eventually collapsed, leaving thousands without their money.
How the Scam Operated?
The criminal group was led by a computer programmer based in Malaga, Spain. The other arrested members, found in Murcia, Madrid, and Malaga, had expertise in marketing, web design, and finance.
Together, they created an online platform that appeared legitimate, attracting unsuspecting investors through the internet and social media.
The scheme was designed to be simple and accessible, even for people unfamiliar with cryptocurrencies. Victims were encouraged to deposit their euros, which the scammers would then convert into Bitcoin.
Some even allowed the fraudsters to control their devices, handing over personal and banking data in the process.
At first, early investors saw small returns, which convinced them to put in more money and recruit others. But as with any pyramid scheme, the system eventually collapsed, leaving most victims unable to withdraw their funds.
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A Single Complaint Led to a Major Breakthrough
The investigation began in 2022 when a victim from Murcia reported being scammed. Police quickly realized this was not an isolated case.
Their investigation revealed that the fraud had impacted victims in 36 countries, with 2,718 people from Spain alone falling prey to the scam.
Authorities estimate that the criminals stole 400 Bitcoins, worth €37.2 million at today’s prices. Police have already seized 73 bank accounts, 12 cars, and five motorcycles as part of their crackdown on the network.
Fake Cryptocurrency and Additional Deception
In addition to the Bitcoin scam, the fraudsters also created a fake cryptocurrency and convinced investors to buy it. This worthless digital currency was another tactic to keep the scheme running longer and take even more money from unsuspecting victims.
Many of those scammed had no prior experience with cryptocurrency. Police warn that the criminals used aggressive marketing tactics, investing seem risk-free. Victims were told that they could not only make huge profits but also get bonuses for recruiting new investors.
How to Avoid Falling for Crypto Scams?
Financial fraud experts stress the importance of verifying investment platforms before handing over money. Investors should always check with financial authorities, such as the National Securities Market Commission, to ensure that a company is licensed to operate.
Experts also warn against investment opportunities that promise impossibly high returns. Another red flag is being asked to recruit others or to install remote access software that allows third parties to control your device.
With more people turning to cryptocurrency investments, scams like this are becoming more common. Fraudsters are constantly finding new ways to deceive investors, using technology and social media to appear legitimate.
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