Spanish Police Shut Down $110 Million Crypto Scam

By Evan Spicer

Director of Cryptocurrency Investigations

Crypto scams are an international phenomenon. Often crypto fraudsters don’t focus on defrauding people in their own region – they extend their activities and rob millions from would-be traders around the globe. 

However, increasingly, police are stepping up their efforts and are making crucial arrests that close down these multi-national crypto scams. 

First Arrest Among Many in Global Crypto Scam Case

Recently, Spanish police made an arrest in the Balearic Islands, an archipelago off the coast of Spain. The suspect allegedly runs a crypto scam with accomplices in five other countries: Azerbaijan, Georgia, Ukraine, Israel, and Russia. 

According to Spanish police reports, the scam allegedly robbed $110 million from 3,000 investors. The investigation began as the result of customer complaints, and information from scam victims led police to the prime suspect in the Balearic Islands. 

The $110 million crypto scam used the usual bitcoin scam tactics. However, they tried to create a veneer of respectability advertising on well-known websites, online magazines and newspapers. These scammers went beyond advertising and use aggressive tactics, such as unsolicited phone calls, emails and WhatsApp spam. 

As with most scams, this operation promised investors huge returns for modest investments of €250 to €1,000. Customers were given false hope with fake graphics which showed profitable trades. Scam brokers often provide decoy trading platforms that don’t reflect the actual market but show manufactured returns. 

When customers asked the broker to withdraw their money, they were given a range of reasons. Some were told that the broker was withholding the money for taxes. Others were informed they were restricted access to their funds because customers hadn’t properly verified their accounts or that they hadn’t made the minimum number of trades. 

In the meantime, the fake broker urged them to deposit more money to make up the number of trades required before they could withdraw their funds. Unfortunately, many scam victims believed this excuse and made additional deposits. 

What’s the Next Step for Broker Scam Victims

Of course, this initial arrest is good news, but it’s one of many that need to follow. With the rapid rise of global crypto scams, police forces around the globe are increasingly cooperating in efforts to combat multi-national fraud. Since cryptocurrency knows no borders, this cooperation is essential to fight internet financial crime. 

Of course, if suspects are arrested, it may seem easier to get a hold of stolen funds, but this process is often lengthy and complicated. Authorities need to find out where the money is, work with judges to subpoena records and liquidate assets for victim fund recovery. 

Even after all of these steps are taken, many scam victims don’t manage to recover all of their funds. However, it is true that the more assertively victims pursue fund recovery, the greater the chances of success. 

Determination is important but it isn’t enough. Crypto scam victims need experts by their side who understand the complexities of crypto recovery cases and can bolster their claims with evidence to improve the likelihood of full fund recovery from crypto scams. 

Have You Lost Money to Crypto Scam FTX? Talk to MyChargeBack Professionals Today

If you have lost money to financial fraud, talk to the MyChargeBack team. Our investigations will provide evidence to bolster your claim. Our crypto investigation reports are essential for tracking down your funds on the blockchain and getting your started on the road to fund recovery.