Spanish police this week arrested four people of different nationalities for allegedly running a $ 15 million crypto Ponzi scheme. According to the police, ‘many victims’ have lodged complaints against them.
Victims believed their bitcoins were going to a legal company
According to Policia Nacional, the four suspects are Argentinian, Spanish and Italian citizens aged between 23 and 36 years old. They persuaded the victims to use their bitcoin (BTC) to them by promising high returns.
Authorities say around 380 BTC were defrauded by the alleged fraudsters, who are currently totaling about $ 15 million BTC price. The victims began to suspect that the four were on a pyramid scheme while not keeping their promises.
The scammers didn’t have a website or a massive platform to attract people, relying mostly on verbal promotion. The fraudsters told their victims that their bitcoin went to a company, which in fact did not exist. However, the police did not disclose the name of the fake company.
Police: there could be ‘many more victims’
The police report shows that one of the fraudsters hid in Cuenca under pressure from several victims who threatened to report him to the police. The report states:
After his arrest, he was made available to the investigating judge who was acting as a security guard in that city. The rest of the detainees were released after being heard in a statement at the Alicante police station.
Without disclosing the number of victims, authorities confirmed that the investigation is underway because there could be “many other victims”.
In another Spanish crypto Ponzi scheme, the Arbistar case, the victims’ lawyer said in December 2020 that the scam had defrauded 32,000 families with at least 93.4 million euros ($ 113.55 million) in losses. Carlos Aránguez, a Spanish lawyer representing 130 victims, pointed out the scale of the disaster provoked according to the Arbistar Ponzi scheme qualifies as the “biggest computer scam” in Spain.
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