The Spanish authorities have dismantled a crypto investment fraud network. The authorities confirmed the development in a press release on Monday, adding that it received support from various law enforcement agencies. They include Estonia Police and Border Guard Board (Politsei- ja Piirivalveamet), France New Caledonia National Gendarmerie (Gendarmerie Nationale), Spain Guardia Civil and USA Homeland Security Investigations (HSI).

The investigation led to the arrest of five suspected members of the criminal network with three apprehended in the Canary Islands and two in Madrid. As revealed, about $539 million (approximately €460 million) in illicit proceeds were stolen through crypto investment fraud from over 5000 victims from around the world. It’s worth noting that the European Union Agency for Law Enforcement Cooperation in conjunction with Spanish authorities began the investigation in 2023. The European Union provided aid to Spanish authorities by coordinating investigations, providing operational support, and delivering strategic analysis.

Spanish authorities shares more details on the fraud network

The leader of the criminal network also carried out their fraudulent activities by using a network of associates spread around the world to raise funds through cash withdrawals, bank transfers, and crypto transfers. The investigators also examined the potentials of the criminals to establish a corporate and banking network in Hong Kong. As revealed, this network was allegedly created using payment gateways and user accounts in the names of different people and in different exchanges to receive, store, and transfer criminal funds.

Over the last few years, online scam has emerged to become an epidemic affecting the crypto world including citizens, businesses and public institutions alike. Just four days ago, a Moscow court also sentenced a Russian mother to seven years imprisonment for defrauding to the tune of $23 million (2.2 billion rubles). The woman, identified as Valeria Fedyakina from Simferopol orchestrated a large-scale pyramid scheme that defrauded investors of $23 million worth of Bitcoin in 60 days in 2023.

Furthermore, she posed as a reputable crypto trader with global offices, promising clients she could transfer their money abroad using crpto to bypass western sanctions. The Russian prosecutors revealed that instead of sticking to her promise, she emptied her client’s accounts. In addition to her seven-year sentence, the court also ordered her to pay $23 million in compensation to her victims.

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