The Spanish Guardia Civil, a Spanish law enforcement agency, has arrested five individuals from a group involved in a long-term cryptocurrency fraud and money laundering scheme. Notably, their fraudulent activity has victimized over 5,000 individuals globally who fell for their lies, resulting in a loss of over $540 million (€460 million).
To abduct the criminals, the Spanish Guardia Civil involved Europol and law enforcement agencies from Estonia, France, and the United States of America.
How $540 Million Scam Played
The scam group deceived many investors across countries with false promises of a fulfilling return on fake crypto investment (ROI). Notably, this had been ongoing for over two years before the authorities apprehended the involved personnel last week.
To appear legitimate, the leaders of the fraud group allegedly employed various global methods, including cash withdrawals, cryptocurrency transfers, and bank transfers, to raise funds.
An ongoing investigation into the case reveals that the fraudsters established a banking network in Hong Kong. Moreover, they used details from different clients across various exchanges to send, receive, and store stolen assets.
Spanish Authorities Take Legal Action
Notably, the investigation into the criminals has been ongoing for a while, as Europol became involved in 2023. Since then, it has coordinated the investigation, provided needed strategic analysis, and given operational support. Additionally, it sent a crypto specialist to Spain on the day of the action to assist in apprehending the criminals.
Notably, since the criminals were scattered in various locations, the authorities caught three in the Canary Islands and two in Madrid, the capital city of Spain. At press time, Europol has not disclosed whether it has confiscated or recovered any of the stolen funds from the fraudsters.
Crypto Scam on the Rise
Last week, a U.S.-based scammer identified as Christian Nieves, also known as Daytwo, pretended to be a customer support representative of Coinbase, one of the world’s largest cryptocurrency exchanges. He called users, claiming their accounts were at risk, and shared links that led to phishing sites masquerading as Coinbase’s platform. He gained over $4 million with this trick.
Meanwhile, many countries around the world have established active agencies to track and capture crypto-related fraudsters.
