Crypto ponzi scheme: police arrests 4 in Spain

Crypto Ponzi scheme

TL;DR Breakdown

  • Spanish authorities arrest four people involved in a crypto ponzi scheme
  • Another crypto scam defrauds over 30,000 families

Authorities in Spain have just effected the arrest of four people for their role in a $15 million crypto ponzi scheme. According to the Spanish police, Policia Nacional, the accused are nationals of Argentina, Spain and Italy between the ages of 23 and 26.

The scammers had convinced their victims to transfer their Bitcoin holdings to them and promised them a high revenue yield. However, when the returns were not forthcoming, the victims began to suspect foul play. They had sent around 380 Bitcoin which equates to close to $15 million to the scammers before discovering that they might have drawn into a crypto ponzi scheme.

According to the available report, the scammers had no recognized website nor did they operate any elaborate platform, rather, they depended on the promotion of their scheme through oral communication. They always told their victims that their crypto assets were going to a fictional company which the authorities did not release its name. And due to the increased pressure faced from their victims, one of the perpetrators of the crypto ponzi scheme chose to hide in Cuenca.

Crypto Ponzi scheme victims could still be out there

Spanish authorities have noted that there could still be many more victims of the crypto ponzi scheme in the country. According to the police report, another crypto scam, Arbistar was said to have duped at least over 30,000 families.

The report noted that the fraudster was able to raise over £90 million from these families. A lawyer for 130 of the victims, Carlos Aránguez, said that this Ponzi scheme could qualify to be the “biggest computer scam” in the history of the Spanish country.

Last year, Spanish authorities arrested Santiago Fuentes for allegedly defrauding over 100,000 people through a fraudulent crypto trading firm.

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Kamsi King

Written by Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.