Recently, Spanish police successfully dismantled a large-scale cryptocurrency scam involving over 30 million euros and affecting more than 3600 people.
The scam was concentrated in cities such as Malaga, Murcia, and Madrid and is one of the largest cryptocurrency pyramid schemes in Spanish history, with over 2700 victims from Spain alone. Other victims are spread across 36 countries worldwide.
Promising a 40% monthly return, it was actually a pyramid scheme
The scam group lured investors with the promise of high returns, claiming monthly earnings of up to 40% and annual returns of up to 300%. However, this model was essentially a classic Ponzi scheme, where early investors' returns depended solely on the funds from new investors, with no real investment returns.
When victims tried to withdraw funds, the platform imposed additional fees and withdrawal restrictions, making it impossible to retrieve their money, ultimately leading to total losses.
Furthermore, the scam group also enticed victims
to invest large sums of money, converting it into Bitcoin. In some cases, they directly accessed victims' devices to complete transactions, during which they stole personal and financial data. Police estimate a loss of about 400 bitcoins, valued at 37.2 million euros (approximately 290 million yuan).
Penetrating social circles, deceiving both online and offline
The scam group not only operated online but also approached victims offline through social activities. For example, one scammer infiltrated a local football club in Malaga, actively participated in social events, and built close relationships with players and their families. He even took part in club barbecues, gaining everyone's trust before promoting the so-called "investment opportunities" and eventually absconding with the funds.
After three years of investigation, police successfully arrested 8 suspects
The investigation began in 2022, led by the Spanish Central Economic and Financial Crime Unit (UDEV). After nearly three years of thorough investigation, police finally arrested 8 suspects, including the mastermind—a programmer, and team members responsible for marketing and web design.
In the police operation, a total of 73 bank accounts, 12 cars, and 5 motorcycles were seized, and it was discovered that the scam group even created a worthless virtual currency to further deceive investors.
