Have you ever wondered how individuals can fall victim to a crypto scam? A significant fraudulent group located in Europe was busted for stealing over €100 million ($118 million) from over 100 victims. This was not a small con; it was a massive amount.
When victims attempted to withdraw their funds, they were contacted for more fees to release their money. The website then disappeared. Several victims lost all of their investment.
On action day, authorities conducted searches at five sites in Spain and Portugal as well as other sites in Italy, Romania, and Bulgaria, and froze assets in bank accounts associated with the fraud. The first suspect is now charged with large-scale fraud and money laundering.
In the U.S. alone, the Federal Trade Commission (FTC) reported Americans lost $12.5 billion to fraud in 2024, with the biggest losses from investment scams, costing around $5.7 billion. Scams of this nature occur all over the world.
How The Scam Worked
The main suspect was running a fraudulent cryptocurrency investment site that promised to refund victims, based on their investment. The money that victims invested was never invested, but the fraudsters transferred victims funds into their own bank accounts in Lithuania.When victims attempted to withdraw their funds, they were contacted for more fees to release their money. The website then disappeared. Several victims lost all of their investment.
The Investigation
This scam was in operation since at least 2018, and it targeted individuals across 23 different countries. Police from Spain, Portugal, Bulgaria, Italy, Lithuania and Romania cooperated on the investigation, and they received assistance from Europol and Eurojust.On action day, authorities conducted searches at five sites in Spain and Portugal as well as other sites in Italy, Romania, and Bulgaria, and froze assets in bank accounts associated with the fraud. The first suspect is now charged with large-scale fraud and money laundering.
Other Large-Scale Crypto Scams
This is not the first time a large-scale crypto scam has occurred in Spain. Earlier in the year, police arrested five people in connection to a scam that resulted in more than 5,000 victims losing $540 million (€460 million). Last month, another operation cost victims almost $11.8 million (€10 million).In the U.S. alone, the Federal Trade Commission (FTC) reported Americans lost $12.5 billion to fraud in 2024, with the biggest losses from investment scams, costing around $5.7 billion. Scams of this nature occur all over the world.
