A criminal syndicate that carried out a significant cryptocurrency fraud and absconded with more than €100 million ($110 million) from over 3,000 individuals worldwide was reportedly dismantled by Spanish authorities. The suspect believed to be a gang member, was apprehended in Mallorca by the Guardia Civil.
According to a local news source, the Guardia Civil, Spain’s oldest law enforcement agency, has probed a criminal group that reportedly scammed thousands of people out of approximately $110 million through fraudulent investments in non-existent cryptocurrencies.
Operation “Mandoa” was initiated by the police after receiving a complaint from an individual in the Alava province who claimed to have fallen prey to the crypto scam. The investigation, spanning the Basque Country and the Balearic Islands, concluded that a firm in Palma de Mallorca received the ill-gotten gains, which it subsequently transferred to countries beyond the European Union.
The Guardia Civil’s investigation into the cryptocurrency scam has revealed a web of deceitful tactics employed by the scammers to trick unsuspecting customers. The fraudsters used a combination of charming phone calls, seductive newspaper ads, and enticing SMS messages, promising risk-free, high-yield investments to lure their victims.
Once they had hooked the innocent investors, the scammers would allow them to access a website displaying fake graphs purporting to show their supposed profits. The elaborate web of lies spun by the fraudsters included concocting false tax obligations or demanding additional funds under the guise of balancing annual accounts before releasing any promised returns.
The scam was executed with such finesse that some victims were unaware of being taken advantage of multiple times. This intricate scheme left many scratching their heads and wondering how the scammers’ crafty tactics had duped them.