Over 5,000 Victims Defrauded of $542M: Spanish Authorities Arrest Five Crypto Fraud Suspects

European Union Agency for Law Enforcement Cooperation (Europol) has identified five suspects in a criminal network of cryptocurrency investment fraud. The scam is allegedly one of the largest cryptocurrency frauds in Spain.

Media reported that Spanish police arrested the five suspects with the support of Europol, and enforcement agencies in France and Estonia. Last Wednesday (June 26), the authorities launched five separate arrest and search operations in the Canary Islands and Madrid.

This investment scam, which reportedly defrauded over 5,000 investors of approximately US$542 million, was orchestrated by a global criminal network. The masterminds solicted funds by cooperating with their associates around the world. And they collected victims’ money through bank transfer and cryptocurrency.

In January, more than $26 million in assets linked to the money laundering were frozen by European authorities. Investigators suspected that a criminal group had created a business in Hong Kong, set up banking network, and used different accounts under different names to receive, keep, and transfer the proceeds of crime.

After freezing the assets, European authorities initiated a series of investigations that ultimately led to the arrest operation.

BrokersView reminds you

Due to the decentralized and anonymous nature of cryptocurrencies, victims of crypto-related scams often face significant challenges in recovering their lost funds.

If you've encountered a similar scam, you can help protect other investors by sharing your experience on BrokersView.