Michael Coy
A CRIMINAL fraud scheme worth 37 million euros has been broken up by the Spanish National Police. Perhaps as many as four thousand people could be victims of the scam.
In simultaneous raids in Málaga, Murcia, and Madrid, officers have dismantled the criminal organisation, dedicated to committing fraud based on cryptocurrency investment.
The scheme involved offering a high-return cryptocurrency investment plan in exchange for leasing bitcoins for a 12-month period. The project concealed a pyramid scheme, because early investors’ bonuses were paid with the funds of subsequent investors until the platform owners eliminated the option to withdraw. Eight people have been arrested, and the fraud is estimated to have involved approximately 400 BTC, which, based on its current price of €93,000, would amount to €37,200,000.
Investigation started in 2022 in Murcia, when a victim reported being scammed. Several months after the project began, the platform’s owners eliminated the option to withdraw investments, blocking the ability of thousands of victims to recover their bitcoins. Officers have searched two homes, one in Málaga and one in Murcia. They have also seized 73 bank accounts, 12 cars, five motorcycles, a cell phone, various items of computer equipment, and €1,500 in cash.
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At least 3,646 users from a total of 36 countries participated in the project, 2,718 being residents of Spain. Throughout 2024, the Central Unit for Economic and Tax Crime (UDEF Central) of the National Police carried out various operations related to cryptocurrencies, both in the areas of financial fraud and money-laundering using virtual currencies. In these operations, a total of 90 people have been arrested, and €30,000,000 in assets have been recovered. In the investigations carried out by the Central UDEF, cryptocurrencies worth more than €3,000,000 have been seized.
One of the operations, codenamed ‘Micron’, is considered particularly significant as it is the type of cryptocurrency scam that most attracts victims – individual investors. In this scheme, victims see ads for investment platforms on social media using images of celebrities used without their consent, promising extraordinary returns on crypto assets. After registering on the website, most victims make a small deposit that quickly generates a high profit. The victim is then invited to make larger investments after being contacted by phone.
Innocent people, generally with little knowledge of this type of investment, receive an invitation to open an account. This transaction is usually carried out in their name by the scammers themselves. The criminals install remote control software that hacks the victim’s computer and gains access to bank accounts. Once the victim decides not to invest further, communications end, and the invested capital is lost.
The scammers remotely control the victim’s computer, tricking them into believing they are transferring or reinvesting the profits. When victims discover that it was all a scam and decide to file a complaint, they find that the supposed payments they received were actually investments from other victims. The scammers have opened accounts in regular banks, using the victims’ documentation and data from their own computer. In addition to losing their capital, they have unwittingly participated in the receipt and diverting of funds from other victims.
The National Police recommend that anyone wanting to invest should check that the company is legitimate by contacting the CNMV (National Securities Market Commission). You should also be wary of websites of the investment platform or entity, even if they display institutional logos (CNMV, Bank of Spain, AEAT) or are advertised by well-known individuals. You should also inquire about terms of service and verify the existence of registered offices.
High returns without risk should not be trusted; not even volatile financial products offer the profits promised by financial scams. Likewise, you should be wary of investment urgency, personal affinity with the broker, pyramid schemes that ask for recruiting, offer entry bonuses or bonuses for acquiring new clients, or requests to install remote control applications on your devices to monitor investments.
If you don’t achieve a return on your investment, you should not continue making contributions or paying fees, taxes, or commissions to recover those funds. Finally, you should be wary of law firms or asset recovery entities that promise to recover your investment in exchange for a provision of funds.
