Spanish Police ‘Dismantle $32.6M Bitcoin-themed Crypto Pyramid Scam’

2025年03月18日

Spanish police officers say they have taken apart a Bitcoin (BTC)-themed crypto pyramid scam that duped victims out of around $32.6 million.

Per the news agency EFE (via Infobae), police officers said they had “dismantled” a “criminal organization” that promoted “fake cryptocurrency investments.”

Spanish Police Make Arrests in Malaga, Madrid, Murcia

Officers said they have arrested eight people, but fear that “more than 3,600 people” have lost money to the crypto scam.

National Police Corp vehicles in Spain
National Police Corp vehicles in Spain. (Source: Supertoni123 [CC BY-SA 4.0])

The National Police Corps (CNP)’s Economic and Financial Crime Unit said the network’s mastermind was a “computer programmer” whom they arrested in Malaga.

The CNP also made arrests in the cities of Murcia, and Madrid, detaining people of “various nationalities and backgrounds.”

The detainees include “marketing and web design experts,” officers said.

Police say the group developed a “seemingly legitimate platform that offered clients a choice of Bitcoin investment plans.”

They then allegedly promoted these products on various websites and social media platforms.

Victims, police said, “did not need to know anything about crypto,” as the alleged scam operators “made it easy for people to convert hundreds, even thousands of euros into Bitcoin.”

The alleged scammers were also able to dupe some “victims” into surrendering control of their electronic devices to “carry out crypto transfers themselves, in addition to stealing their personal and banking data.”

Operation Began in 2022 – Police

The CNP first learned of the operation in 2022, when a “victim” filed a report in Murcia.

As police investigated, they unearthed a complicated network of investments whereby older investors were paid using newer investors’ funds.

When people tried to withdraw their funds from the platform, the operators would reportedly concoct “obstacles” to delay or obfuscate the process.

One officer told EFE that some “victims” signed “contracts” with the operators, who “promised to pay dividends of 40% after one month,” and “up to 300% after a year.”

The police force eventually found a “trail” of fraud that “included thousands of victims in as many as 36 countries.”

‘Worthless Coin’

The CNP thinks that “at least 3,646 victims” lost their money to the scammers, 2,718 of whom are Spanish residents.

The fraudsters appear to have amassed vast Bitcoin holdings, with crypto wallets containing some BTC 400.

Officers say the masterminds also “created a new, worthless token” to investors.

The victims were mainly individuals who “had never invested in cryptocurrencies” before, the CNP said. Some corporations also fell victim to the scam, officers added.

Officers also froze 73 bank accounts and impounded cars, motorcycles, computer equipment, and hundreds of euros in cash.

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Robinhood Launches Prediction Markets Hub For US Retail Investors

2025年03月18日

Key Takeaways:

  • Robinhood debuts a dedicated area for trading contracts based on future events.
  • The platform covers topics from economic shifts to sports tournaments.
  • Contracts are executed through a regulated exchange ensuring oversight.
  • The move broadens retail access to market instruments traditionally reserved for institutions.

Robinhood Derivatives, LLC announced on Monday it is launching a dedicated prediction markets hub through KalshiEX LLC, a CFTC-regulated exchange.

In a blog post the trading firm said, the new hub allows customers to trade on the outcomes of major global events, merging the worlds of finance, news, politics, sports, and culture in one dynamic platform.

At launch, the hub will offer contracts on two marquee events: determining the upper bound of the target fed funds rate in May and predicting the winners of the upcoming men’s and women’s College Basketball Tournaments.

Prediction Markets Hub in Compliance With Existing Regs

“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, VP and GM of Futures and International at Robinhood.

“We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations,” he added.

By using a regulated framework, the hub looks to provide greater liquidity, transparency, and price discovery—all hallmarks of traditional financial market structures, explains Robinhood.

This approach is designed to offer a safer trading environment, where the excitement of speculative trading is balanced by regulatory oversight.

To make sure compliance is in place and maintain market integrity, the prediction markets hub will operate through KalshiEX LLC, a CFTC-regulated exchange.

Robinhood said it has been in close communication with the CFTC over the past several weeks, discussing its commitment to regulatory adherence.

This partnership seeks to legitimize the trading of prediction market contracts and open up new avenues for retail investors to engage with financial assets that were only to institutional investors, said the trading platform.

The company has also recently released a policy paper detailing its supportive stance on emerging asset classes like prediction markets, emphasizing its drive to democratize financial participation.

The new prediction markets contracts will begin rolling out today and will soon be available to all customers.

Robinhood Says SEC Has Dismissed Crypto Investigation

In February, Robinhood announced that the United States Securities and Exchange Commission (SEC) had closed its investigation without enforcement action, effectively ending concerns over alleged sales of securities on the platform.

The SEC initially launched its probe into Robinhood Crypto last spring, notifying Robinhood’s digital asset branch via a Wells Notice that it would likely face regulatory consequences for allegedly selling securities.

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Charting New Market Territories

The introduction of this prediction hub signals a subtle yet notable shift in how retail investors view market participation.

It encourages a broader perspective, inviting individuals to see financial trading as an extension of everyday decision-making.

By offering a platform for diverse events, it paves the way for fresh insights into market behavior.

The regulated structure provides a safe space for exploring new ideas while maintaining a disciplined trading environment.

This move sets the stage for investors to discover untapped opportunities through a more expansive view of global trends.

Frequently Asked Questions (FAQs)

How do prediction markets differ from conventional trading instruments?

A prediction market sets prices based on the consensus for future events. Unlike traditional securities that value company performance, these contracts mirror collective probability estimates and public expectations.

What are the primary risks for retail investors in prediction markets?

Retail investors face rapid contract price swings and unexpected regulatory changes that can alter trading conditions. High volatility and fluctuating liquidity may lead to losses if market sentiment shifts suddenly.

How might successful prediction markets influence broader investment strategies?

A thriving prediction market can offer fresh sentiment data that complements traditional analysis. Investors may adjust risk profiles and diversify portfolios by integrating these collective forecasts into their decision process.

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China’s Central Bank Pushes for Artificial Intelligence Integration in Digital Finance

2025年03月18日

Key Takeaways:

  • Banks might rethink internal systems, leaning on homegrown AI instead of external models.
  • The shift prompts a review of risk methods and compliance practices amid tech updates.
  • Digital finance could see evolving work roles and new training demands as tech adoption grows.

During its annual Technology Work Conference on March 17, the People’s Bank of China (PBOC) outlined its 2025 financial technology agenda, prioritizing the integration of large-scale machine learning models into financial services.

The central bank stressed enhancing cybersecurity, strengthening regulatory governance, and tightening financial technology infrastructure.

It proposed increasing IT capabilities to support regulatory roles while introducing advanced automation in financial processes under controlled conditions.

China Advances Artificial Intelligence Integration in Digital Finance

PBOC officials stated that artificial intelligence technology would improve security, streamline operations, and advance digital finance.

The bank also plans to bolster financial data protections and enhance collaboration on technology standards.

This comes after the November 2024 publication of the Action Plan for Promoting High-Quality Development of Digital Finance, which seeks to align the financial system with China’s broader objectives for the digital economy by 2027.

Following these developments, financial institutions—particularly with players like DeepSeek—have begun integrating artificial intelligence into their services.

Over 20 banks have implemented DeepSeek’s models for fraud detection, business process optimization, and customer service automation.

Financial institutions are applying artificial intelligence to enhance decision-making and improve risk management, reflecting the industry’s broader shift toward automation.

The Agricultural Bank of China, for instance, has introduced a phased rollout of intelligent systems through 2029.

Many institutions prefer developing proprietary models instead of relying on external providers, citing security concerns.

Artificial Intelligence’s Expanding Role in Financial Services

Banks are deploying automation not just for customer service but also in critical areas like risk assessment, fraud detection, and decision-making.

These innovations promise improved efficiency and more precise financial planning.

Industry experts predict that the steady integration of artificial intelligence will gradually reshape traditional banking operations, streamlining procedures and refining strategic approaches.

Amid these shifts, regulators are reinforcing oversight to ensure that financial technologies meet stringent global standards and security requirements.

As the industry adjusts to these developments, readers are invited to reflect on how these changes might influence their own financial decisions and long-term strategies.

Frequently Asked Questions (FAQs):

How might AI integration alter bank staff roles?

Shifting to AI may prompt banks to reassign roles, where employees learn to manage tech outputs while human insight remains essential. This adjustment could lead to new training programs and workflow changes.

What operational challenges could banks face with AI adoption?

Banks face hurdles like integrating advanced tech with outdated systems and adjusting work routines. Ensuring data quality and regulatory alignment might demand a gradual overhaul of operational practices.

Could enhanced AI change how customers interact with digital finance?

Enhanced artificial intelligence may offer a more responsive customer interface and refined personalization, yet users might need to adjust to less human interaction. Overall, banks may see shifts in client engagement methods.

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