PANews reported on March 18 that according to Cryptonews, the Spanish police announced that they had successfully smashed a Bitcoin-themed crypto pyramid scam that caused victims to lose approximately $32.6 million. The police have arrested eight suspects, but it is estimated that "more than 3,600 people" have suffered losses in this scam. The Economic and Financial Crimes Department of the National Police Force (CNP) revealed that the mastermind of the criminal network was a "computer programmer" who had been arrested in Malaga. In addition, the police also launched operations in Murcia and Madrid, arresting suspects from "different nationalities and backgrounds", including "marketing and web design experts."
The gang set up a "legitimate-looking platform" to offer Bitcoin investment plans to customers. They then promoted these products on major websites and social media. The scammers also tricked some "victims" into handing over control of their electronic devices so that they could "transfer cryptocurrency on their own and steal their personal and banking information."
During the investigation, the police uncovered a complex investment network that used funds from new investors to pay returns to old investors. Some "victims" signed a "contract" with the operator, who promised to "pay 40% dividends after a month and up to 300% after a year." Eventually, the police tracked down a "fraud chain" and found "thousands of victims in up to 36 countries."
