Spanish Authorities Crack Down on €460 Million Crypto Fraud
On June 25, Spanish authorities, in collaboration with Europol and international partners, dismantled a massive crypto fraud network. Teh operation resulted in the arrest of five suspects.
Three arrests took place on the Canary Islands, and two in Madrid. The suspects are accused of running one of Europe’s largest crypto fraud operations. They allegedly used a global network of sales reps to trick people into investing in fake crypto schemes. The criminals collected money through cash, bank transfers, and crypto-transfers. Over 5,000 victims worldwide lost an estimated €460 million.
The fraudsters set up a complex system involving Hong Kong-based corporate and banking structures. They used various crypto exchanges to launder the stolen funds. The group’s tactics included persuading victims to invest in fraudulent schemes. The operation involved law enforcement from Estonia, France, and the U.S. The network defrauded victims by promising high returns on fake investments. The scheme involved cash withdrawals, bank transfers, and crypto-transfers.
Investigators say the group laundered the illicit funds using payment gateways and accounts under fake names. the network’s complexity made it hard to trace the money. The investigation is ongoing.
just weeks earlier,another online investment scam was shut down. This €3 million scheme used fake trading platforms and brokers to deceive investors.
Europol warns that online fraud is a growing threat. The use of AI is expected to make these crimes even more challenging to combat.
