Spain Halts Massive Cryptocurrency Scam, Preventing Loss of Over $110 Million from Investors
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Loading... - megan lolla
- 18 May 2023
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Spanish authorities have successfully dismantled a criminal organization responsible for orchestrating a large-scale cryptocurrency scam. The perpetrators managed to embezzle more than €100 million ($110 million) from over 3,000 individuals worldwide. One suspect, believed to be a member of the gang, has been apprehended in Mallorca by the Guardia Civil.
Dubbed "Operation Mandoa," the investigation was initiated by the Guardia Civil, Spain's oldest law enforcement agency, following a complaint from a victim in the province of Alava who fell victim to a crypto fraud scheme.
The operation targeted a crime unit that deceived thousands of people through investments in non-existent cryptocurrencies. The scope of the investigation encompassed the Basque Country and the Balearic Islands, ultimately tracing the flow of counterfeit investments to a company based in Palma de Mallorca. This alleged firm then funneled the funds to nations outside the European Union.
The Guardia Civil confirmed that the organization enticed victims through telephone calls, newspaper advertisements, and SMS, enticing them with promises of high returns and zero risks. Once clients entered into contracts and transferred their funds, the scammers provided access to a website featuring fake graphs displaying the supposed profits from their investments. To further manipulate victims, fraudulent brokers were assigned to maintain communication and encourage continued investment in the fraudulent scheme.
Unfortunately, the criminals did not fulfill their promises to provide profits to investors. Instead, they coerced victims into transferring additional funds under false pretenses, such as the need to cover annual balance sheets or tax payments.
At present, the police have only detained one suspect in Mallorca, who is believed to be connected to the criminal group.
The Impact of Crypto Scams on Individuals
Instances of such scams have had a severe impact on individuals, leading to substantial financial losses. Just last week, CryptoPotato reported the story of Jennifer, a Scottish woman who fell victim to a cryptocurrency scheme and found herself burdened with a $190,000 debt. She had invested her entire life savings in a suspicious project after encountering a fake advertisement on Facebook featuring the British journalist and financial expert, Martin Lewis.
Expressing her regret, Jennifer stated, "I can't believe what has happened to me; it's absolutely devastating. It took me a long time to reach where I am, and the thought of losing my home, especially for the sake of my children, is heart-wrenching."
Another example involves a resident of Hong Kong who lost her entire savings of $900,000. She became a target of a criminal who contacted her through Instagram, persuading her to invest in digital currencies with promises of significant returns.
When she attempted to withdraw her funds, she was asked to pay a fee. In desperation, she even considered borrowing money from her daughter before realizing she had fallen victim to a scam.
Crypto scams have the potential to cause substantial harm to unsuspecting individuals, highlighting the importance of awareness and caution when engaging in cryptocurrency investments.
