According to a statement from the National Police, they have detained a licensed cryptocurrency broker who ran a legal business in Murcia. They are accused of defrauding at least seven people and one legal company out of more than 150,000 euros.
The events started in late 2023, when a number of people were “recruited” to invest in several cryptocurrencies because they were promised enormous and quick profits, but in reality, it was a fake investment product.
The scam started with a promoter from another country who would do business through a legitimate cryptocurrency broker in a store in the centre of the city of Murcia. This broker would use his expertise and good name to make investors think the business was successful and profitable.
The Cybercrime Group of the Murcia Regional Police Headquarters has been looking into this investigation for the past few months. They found that a criminal network had formed between the promoter and the authorised broker to make investments in cryptocurrencies using the “Ponzi” scam method.
The Ponzi scheme works by getting people to invest money at first, but that money isn’t utilised for the investment that was promised. Instead, it is used to pay modest returns to new investors who join the plan. This way, practically all of the money that the victims put in becomes profit for those who are participating.
Last October, police arrested a man who worked as a broker and charged him with fraud that affected at least seven people and one business. The total amount of money lost was 154,000 euros.
The investigation is still going on so that other people who were involved or affected can be found.
Author: Derek Appleton
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