Spanish law enforcement has uncovered an organisation responsible for a substantial cryptocurrency fraud of $110 million, according to the local publication Majorca Daily Bulletin.
According to investigators, the perpetrators swindled more than 3,000 people worldwide out of their money through investments in non-existent digital assets.
During Operation Mandoa, police found that the recipient of the funds was a Palma de Mallorca-based firm, which carried out separate transfers to countries outside the European Union.
The group members allegedly lured victims into their scheme through phone calls, newspaper advertisements and SMS messages, promising high profits with little or no risk.
After entering into contracts with clients and receiving funds, the perpetrators allegedly provided them access to a website with fake charts that demonstrated profitability. The fake brokers remained in contact with the victims until the end, urging them to invest even more.
Police arrested only one suspect on Mallorca, linked to the fraud ring.
As reported in March, the perpetrators organised a postal mailing in Russia announcing the launch of a ‘state cryptocurrency’. They offered to invest in nonexistent assets that purportedly allow them to make millions using cutting-edge technologies.
In the same month, US authorities arrested a Chinese national Miles Go on charges of organizing a cryptocurrency-related fraud totaling more than $1 billion.