Spain Stopped a Crypto Fraud That Affected Investors

Spain Stopped a Crypto Fraud That Affected Investors

According to reports, Spanish authorities have dismantled a criminal organization that staged a massive cryptocurrency scam. The perpetrators embezzled over 100 million euros from over 3,000 people worldwide.


The Guardia Civil has arrested a suspect in Mallorca on suspicion of being a gang member.


The Mandoa Operation

Local media reported that the Guardia Civil (Spain’s oldest police agency) investigated a crime unit allegedly extorting around $110 million from thousands of people by investigating non-existent cryptocurrencies.


Police launched what they called “Operation Mandoa” after receiving a complaint from someone from Alava province who claimed to have been a victim of a cryptocurrency scam.


The investigation, which enclosed the Basque County and the Balearic Islands, revealed that the beneficiary of these fraudulent investments was a company based in Palma de Mallorca. The alleged company made different transfers to countries outside the European Union.


The Guardia Civil verified that members of the organization tricked the victims into their plan by phone calls, newspaper advertisements, or text messages, promising them high returns without risk.


After formalizing the contract with the clients and receiving the funds, the authors provided them with a website to look at the profit made on their investments using fake charts. The criminals even asked the scammers to keep in touch with the victims so they could instigate them to continue investing in the scheme.


However, the gang would not grant the people’s request for a share of their profit. Instead, they asked them to send more money, using excuses like closing the annual budget or paying taxes.


So far, the Mallorcan police have arrested one suspect who belongs to the criminal organization.


Damages the Crypto Scam Could Cause  

Such scams have affected many people lately and extorted large sums of money from their pockets. As CryptoPotato announced last week, a Scottish woman named Jennifer was in a $190,000 debt after being a victim of a cryptocurrency scheme.


After seeing a fake Facebook advert featuring a British journalist and consultant, Martin Lewis, she decided to invest her life savings in a shady venture.


“I can’t believe what happened to me; it is cruel. It has taken me much time to reach where I am, and the idea of losing this home is cruel for her children,” the woman said regretfully.