A major cryptocurrency pyramid scheme in Spain defrauded 3,600 people and raised $32.6 million. Eight suspects, including the alleged mastermind, were arrested.
The Scheme Unmasked
Scammers used a fake Bitcoin investment platform, promising returns as high as 40% monthly and 300% yearly. They presented themselves as professionals with fake trading dashboards, which attracted many naive investors.
Capitalizing on Trust and Technology
Besides stealing money, the crooks gained access to victims' personal devices to steal cryptocurrency and personal data. The pyramid scheme paid existing investors with money from newcomers, maintaining the illusion of profitability.
Investigation and Asset Seizure
The investigation lasted almost three years, initiated by a victim's complaint from Murcia in 2022. Police found around 400 bitcoins valued at €37.2 million and froze 73 bank accounts, seizing vehicles and computer gear to curb fraudulent operations.
This case highlights the risks of cryptocurrency investments in unregulated markets. Investors are advised to thoroughly vet opportunities and beware of implausible profit promises.
