Spain Stops Crypto Scam That Drained Over $110 Million From Investors (Report)
Spanish authorities have reportedly broken up a criminal organization that orchestrated a massive cryptocurrency scam. The perpetrators embezzled more than €100 million ($110 million) from over 3,000 people worldwide.
The Guardia Civil arrested a suspect in Mallorca who was considered a gang member.
Operation ‘Mandoa’ was successful
A local media outlet informed that the Guardia Civil (the oldest law enforcement agency in Spain) was investigating a crime unit that allegedly swindled around $110 million from thousands of people via investments in non-existent cryptocurrencies.
The police launched the so-called “Operation Mandoa” after receiving a complaint from a person in Alava province who claimed to have been duped in a crypto scam.
The investigation, which covered the Basque Country and the Balearic Islands, estimated that the recipient of these counterfeit investments was a company based in Palma de Mallorca. In turn, the alleged company made separate transfers to nations outside the EU.
The Guardia Civil confirmed that members of the organization lured victims into their scheme through phone calls, newspaper ads or text messages, promising them high returns without risk.
After formalizing a contract with clients and receiving funds, the offenders gave them access to a website where they could check the profits of their investments with fake graphs. The criminals even instructed fraudulent brokers to keep in touch with victims so they could encourage them to continue investing in the scheme.
However, the gang did not comply with the people’s request to obtain some of their profits. Instead, they instructed them to transfer more money with excuses such as closing annual balances or tax payments.
The police have so far detained only one suspect in Mallorca for being a suspected member of the criminal group.
Crypto scams can cause serious damage
Such fraud has recently affected many individuals, skimming significant sums from their pockets. As The crypto potato reported last week a Scottish woman named Jennifer was left with $190,000 in debt after falling victim to a cryptocurrency scheme.
She decided to invest all her savings in a dubious project after seeing a fake ad on Facebook featuring British journalist and council expert – Martin Lewis.
“Indeed, I cannot quite believe what has happened to me; it’s absolutely terrible. It has taken me a long time to get to where I am and the thought of losing this home, obviously for the sake of my children, is terrible,” the woman regretted.
Another example is a resident of Hong Kong who lost all her money ($900,000). She was the victim of a criminal who contacted her on Instagram and encouraged her to invest in digital currencies with the promise of high returns.
When she tried to withdraw her money, she was asked to pay a certain fee. The woman even tried to borrow money from her daughter before she realized she had been cheated.
