Spanish authorities have dismantled a Bitcoin-based pyramid scheme that defrauded 3,600 victims of $32.6 million, arresting 8 perpetrators including the lead programmer caught in Málaga. The National Police's (CNP) Economic Crime Unit conducted a nearly 3-year investigation that revealed fraudsters promising investors monthly returns of 40% and annual returns of 300% through aggressive online marketing.
Following the classic pyramid scheme model, new investors' money was used to pay earlier participants, creating a sophisticated trading platform displaying false massive returns. The scam came to the authorities' attention in 2022 when a victim from Murcia filed a complaint, and the investigation uncovered the criminals' sophisticated system using a network of crypto wallets and shell companies to launder the stolen money. Spanish police froze 73 bank accounts and seized 12 cars and 5 motorcycles, whilst the scammers even created a worthless virtual currency to further deceive investors. Several perpetrators were marketing and web development experts from Madrid and Murcia who helped lend a legitimate appearance to the platform, with many victims even signing contracts that increased trust in the site.
The case highlights the growing danger of crypto scams, particularly in unregulated environments where criminals rely on investor confidence. Authorities continue investigating to recover the stolen funds, whilst Bitcoin's price hovers around $82,947.63 with support levels between $82,590-82,740. The RSI indicator at 39.92 signals oversold territory suggesting potential rebound, however the MACD death cross indicates continued bearish momentum.
Sources:
1.
Coinfomania News Room
2.
nikoletasdiplomacy.edu
3.
Lorraine Williamson
