By Evan Spicer
Director of Cryptocurrency Investigations
MyChargeBack
At a time when every news cycle has at least one big story about a crypto scam, one thing is for certain – these bitcoin scam dramas are certainly not dull.
In fact, we see as much drama with bitcoin frauds as we do in the hottest Netflix series. This is true of the downfall of 30-year-old crypto superstar Sam Bankman-Fried and the FTX collapse. Another crypto scam tragedy sweeping Europe is the tragedy of Javier Biosca, the force behind the Ponzi scheme Algorithms Group, which swindled $848 million from clients and investors.
The Rise and Fall of a Ponzi Crypto Scam
As with many stories, it’s the ending that draws people in first. The story of Algorithms Group and Javier Biosca ended when he fell to his death from the fifth story of a fancy hotel in Estepona in Spain, according to El Pais.
The funeral was closed casket, given the body’s condition, and was attended by just a few people, including his wife and children. Biosca was once a successful and sought-after crypto broker who attracted investments from high-profile individuals in Spain and around the world. At the very end, he had few friends, a handful of mourners at his funeral and all of the money he had stolen was missing.
Javier Biosca’s humble beginnings as a hardware salesman in the small Spanish town of Torrijos, with fewer than 10,000 residents, didn’t hint at his future as the wealthy head of a crypto scam. He, like many others, became interested in cryptocurrency – mainly about how to make a killing at it without playing by the rules.
In 2019, Biosca started a crypto trading platform called Algorithms Group, which was based in London, although the company had no license from the Financial Conduct Authority – a requirement for all financial institutions and brokerages in the United Kingdom.
Lacking a license didn’t seem to bother Biosca in the slightest. After all, wasn’t cryptocurrency a new frontier with no rules? He had 19 initial investors in London and, after that, he hired a PR team and got the attention of wealthy investors who wanted to speculate with cryptocurrencies.
At first, everyone was paid — the employees, clients, and investors. Biosca promised an incredible 20-25% return weekly. This double-digit weekly guaranteed return should have been enough to warn off prudent investors. However, bitcoin prices were high then and Biosca and his clients rode the wave.
How Javier Biosca’s Bitcoin Scam Unraveled
However, the crash in bitcoin price would reveal Algorithms Group as a crypto scam. Soon employees were no longer paid. Clients began trying to cash out their positions and requested withdrawals. A legitimate broker would be able to return their money even though the asset had decreased in value if he had actually traded the asset as he had promised, rather than spending clients’ money.
Instead, Biosca has nothing to give clients who asked for withdrawals because he had spent all of his money on a mansion and fancy cars. That’s when the trouble began.
Angry investors began demanding their money back. The average investor had lost the equivalent of $50,000 and many lost even more. Judge Santiago Pedraz sentenced Biosca to prison for money laundering, forgery and other criminal activities.
Biosca’s bail was set at the equivalent of $1 million. Someone paid the bail only to find Biosca 40 pounds lighter after eight months and feeble from regular beatings by inmates. It turned out that the person who put up the bail was one of Biosca’s creditors trying to get fund recovery for the money he lost. When he discovered Biosca couldn’t get his funds back, he rescinded the bail, which would have sent Biosca back to prison.
However, before Biosca could return to prison, he fell out a window. Some people believe it’s suicide, but it’s also known that Bisoca cheated the wrong people – members of the Russian mafia. There is some suspicion that Biosca’s death wasn’t accidental and that he was “helped” out of the window by his angry mafia clients.
What about Crypto Recovery for Algorithm Group’s Clients?
The tragedy of this case isn’t just Biosca’s death, but the people he robbed who lost a total of $848 million, which seems to have disappeared without a trace. Is bitcoin recovery possible for Boscia’s victims?
A full crypto investigation is needed to find where the funds have gone. Also, it’s likely that his luxuries can be liquidated to pay back at least some of the stolen money. In cases where money seems to disappear, crypto investigators can make the difference between crypto recovery and stalemate.
If you’ve lost money to a crypto scam, it’s important to seek the assistance of MyChargeBack experts who can launch an in-depth crypto investigation, create a detailed crypto report, and can bolster your claim to increase the likelihood of crypto recovery.
MyChargeBack Will Investigate Your Crypto Case
If you have lost money on the blockchain through unregulated brokers, bitcoin wallet hacking or fake merchants, talk to the MyChargeBack team. Our crypto investigations will provide evidence to bolster your claim.
MyChargeBack has developed working relationships with law enforcement agencies worldwide, have extensive knowledge and experience with crypto tracking and can improve your prospects of getting your funds back.
