Spanish Police Detains 4 Involved in $15 Million Crypto Ponzi Scheme

Jafrin  |  Jan 9, 2021

Earlier this week, Spanish police detained four people for allegedly running a $15 million crypto ponzi scheme. The four accused apparently belong from different nations such as Argentina, Spain, and Italy between the ages of 23-36. Apparently, the scammers persuaded innocent victims to transfer Bitcoin (BTC) in the promise of higher returns. The scammers were able to dupe victims for around 380 BTC that currently amounts to approximately $15 million.

Spanish Police Detains 4 Involved in $15M Crypto Ponzi Scheme

According to Policia Nacional, the fraudsters were identified as the victims had filed complaints against them. The victims started suspecting that the four were running a pyramid scheme when they did not deliver on their promises.

Unlike how general crypto scammers resort to other means such as having websites or fancy marketing strategies. The tricksters were able to dupe people merely through verbal means. They told the victims that their Bitcoin will go to a company (which did not really exist).

Meanwhile, one of the 4 accused hid in Cuenca due to several victims threatening to report him to the police.

The report highlighted:

"Once detained, he was placed at the disposal of the investigating court acting as a guard in that city. The rest of the detainees were released after being heard in a statement at the Alicante police station."

Investigation Still Continues

The authorities further revealed that the investigation continues, as there could be many victims that could fall prey to such crypto scams. The authorities, however, did not reveal the total number of people that have been scammed in the latest crypto ponzi scheme.

Meanwhile, in another story related to a Spanish crypto Ponzi scheme, the Arbistar case victims’ defense lawyer, Carlos Aránguez, said in December 2020 that the scam had duped 32,000 families with at least 93.4 million euros ($113.55 million) in losses.

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