Spanish authorities have busted a massive cryptocurrency scam that fleeced thousands of unsuspecting victims out of $32.6 million. The pyramid scheme, which promised ridiculous returns of 40% monthly and 300% annually, operated across 36 countries before the hammer finally came down.
Spanish authorities nailed a $32.6 million crypto scam promising absurd returns across 36 countries. Classic pyramid scheme takedown.
Because apparently some people still believe you can get rich quick without consequences.
The National Police Corps launched their investigation in 2022 after a victim complaint. Their Economic and Financial Crime Unit spent months unraveling a complex investment network that spanned multiple countries. The result? Eight arrests, including the mastermind—a computer programmer nabbed in Malaga. Others were caught in Madrid and Murcia.
These weren’t amateur scammers; they included marketing experts and web designers who knew exactly what they were doing.
The operation’s scope was staggering. Over 3,600 people fell victim, with most coming from Spain. Many lacked basic knowledge about cryptocurrency—a vulnerability the scammers ruthlessly exploited. Similar to victims in Appleton, these people often lacked crypto wallets for recovering funds. Some victims even surrendered control of their devices. Bad move.
The scammers’ tactics were classic pyramid scheme. They created a legitimate-looking online platform, used new investor money to pay earlier participants, and constantly fabricated obstacles when people tried to withdraw funds. Unlike with DEX platforms, these centralized operations gave criminals complete control over users’ assets. The criminals heavily promoted their Bitcoin investment plans on major websites and social media to attract unsuspecting investors.
When that didn’t work, they issued worthless tokens. They also stole personal and banking data. Charming folks.
Authorities have frozen 73 bank accounts and seized approximately 400 Bitcoin from criminal wallets—cryptocurrency worth about €37.2 million. They also confiscated cash, vehicles, and computer equipment.
The investigation uncovered multiple shell companies used to launder the proceeds.
This case highlights the urgent need for stricter regulations in the cryptocurrency space. It also demonstrates the risks of unregulated investments and underscores how important international cooperation is when fighting financial crime.
Because when it comes to crypto scams, national borders mean nothing. The money’s gone in seconds, but the damage lasts for years.
