Spain Halts a Crypto Scam That Drained Over $110 Million From Investors (Report)

Spain’s authorities reportedly busted a criminal organization that orchestrated a massive cryptocurrency scam. The wrongdoers embezzled more than €100 million ($110 million) from over 3,000 people across the globe. 

The Guardia Civil arrested a suspect in Mallorca considered a gang member.

Operation ‘Mandoa’ Turned Successful

A local media outlet informed that the Guardia Civil (the oldest law enforcement agency in Spain) investigated a crime unit that supposedly swindled approximately $110 million from thousands of people via investments in non-existent cryptocurrencies. 

The police launched the so-called operation “Mandoa” after receiving a complaint from a person in the province of Alava who claimed to have been conned in a crypto fraud. 

The investigation, which covered the Basque Country and the Balearic Islands, estimated that the recipient of these counterfeit investments was a firm based in Palma de Mallorca. For its part, the alleged company made separate transfers to nations outside the European Union. 

The Guardia Civil confirmed that members of the organization lured victims into their scheme through telephone calls, advertisements in newspapers, or SMS, promising them high returns without risk. 

Once formalizing a contract with clients and receiving funds, the wrongdoers provided them access to a website where they could check the profits of their investments with fake graphs. The criminals even instructed fraudulent brokers to stay in touch with victims so they could encourage them to keep investing in the scheme. 

However, the gang did not honor the people’s request to obtain some of their profits. Instead, they instructed them to transfer more money with excuses such as the closing of annual balance sheets or tax payments.

The police have so far detained only one suspect in Mallorca for being a supposed member of the criminal group.

Crypto Scams Could Cause Serious Harm

Such fraud has recently affected numerous individuals, skimming substantial sums from their pockets. As CryptoPotato reported last week, a Scottish woman called Jennifer was left with a $190,000 debt after falling victim to a cryptocurrency scheme.

She decided to invest her entire life savings into a suspicious project after seeing a fake advert on Facebook featuring the British journalist and advice expert – Martin Lewis. 

“I can’t actually quite believe what’s happened to me; it’s absolutely horrific. It’s taken me a long time to get to where I am, and the thought of losing this home, obviously for the sake of my children, is horrific,” the woman regretted.

Another example is a Hong Kong resident who lost all her money ($900,000). She fell prey to a criminal who contacted her on Instagram and urged her to invest in digital currencies with the promise of great returns. 

When trying to withdraw her funds, she was requested to pay a certain fee. The woman even attempted to borrow money from her daughter before realizing she had fallen prey.