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.

The post Spanish Police ‘Dismantle $32.6M Bitcoin-themed Crypto Pyramid Scam’ appeared first on Cryptonews.

Malaysia Warns of Rising Crypto Investment Scams Targeting Professionals and Seniors

2025年03月18日

Malaysia is witnessing a sharp rise in crypto investment scams, with authorities warning that professionals and senior citizens are increasingly becoming prime targets.

According to a report from TheMalaysianReserve, Bukit Aman Commercial Crime Investigation Department (JSJK) Director Datuk Seri Ramli Mohamed Yoosuf has urged caution, particularly for investors over 60 years old who might be lured by the promise of high returns.

Victims Of Crypto Investment Scams Increasing

Ramli highlighted a recent case in which a 74-year-old lost tens of millions of ringgit after falling victim to a fraudulent scheme.

Many of these scams operate under the illusion that purchasing multiple cryptocurrency coins, each worth hundreds of thousands of ringgit will guarantee enormous profits.

However, as he clarified, “no investment is made; it’s purely a scam.”

Beyond cryptocurrency fraud, phone scams remain a growing concern. Scammers often impersonate trusted authorities such as financial regulators, banks, and law enforcement agencies to manipulate victims into handing over their money.

Ramli emphasized that legitimate agencies such as the Royal Malaysia Police, the Inland Revenue Board, and Bank Negara Malaysia do not operate through elaborate multi-step phone calls where victims are transferred between different departments.

The increasing complexity of these scams can be attributed to rapid technological advancements.

Cyber-enabled and cyber-dependent crimes have become more sophisticated. They often leverage AI-based tools and deepfake technology to convincingly impersonate officials or reputable cryptocurrency projects.

Experts warn that these tactics will likely evolve, making scams even more difficult to detect.

Growing Threat of Unregulated Investment Schemes

The Malaysian Digital Asset Platform Association (MDAPA) has raised concerns that scammers are exploiting social media platforms to prey on vulnerable groups, particularly senior citizens seeking financial security in retirement.

Many fraudulent actors impersonate agents of legitimate digital asset exchanges, tricking investors into transferring funds under false pretenses.

MDAPA stresses that approved exchanges will never guarantee investment returns, flaunt displays of wealth, or use third-party intermediaries. In fact, its rigorous regulatory approval process has sent top exchanges like ByBit away.

Investors must conduct all transactions themselves via official exchange platforms or mobile applications.

The Securities Commission Malaysia has approved only six digital asset exchanges, including HATA Digital, Luno Malaysia, MX Global, SINEGY DAX, Tokenize Technology, and Torum International.

Additionally, two initial exchange offering platforms, Pitch Platforms and Kapital DX, have been approved.

Investors are strongly advised to check the Securities Commission Malaysia’s official website for a list of regulated digital asset players before making any financial commitments.

Malaysia’s Countermeasures Against Fraud

In response to the surge in investment scams, Malaysian authorities are leveraging advanced technology to track illicit transactions and enhance fraud detection.

AI-powered systems and blockchain analytics are being integrated into law enforcement strategies to identify fraudulent activities more effectively.

Authorities have also intensified enforcement efforts, leading to many arrests.

According to the report, the JSJK reported 23,000 successful arrests linked to scam syndicates across Malaysia last year.

Many of these fraudulent operations are run from luxury condominiums in high-density areas such as Selangor, Kuala Lumpur, and Penang, further complicating tracking and enforcement efforts.

Beyond cryptocurrency fraud, Malaysia is also grappling with a rise in illegal Bitcoin mining activities.

Authorities have uncovered numerous cases of miners illicitly tapping into electricity grids, resulting in hundreds of millions of ringgit in financial losses. The most recent one was on February 13, following a blast caused by the miners.

This further highlights the broader issue of financial crimes linked to the crypto industry.

To combat these threats, Malaysian authorities urge the public to stay vigilant and report suspected scams to the Commercial Crime Investigation Department via 03-26101559 or the National Scam Response Centre at 997.

The post Malaysia Warns of Rising Crypto Investment Scams Targeting Professionals and Seniors appeared first on Cryptonews.

Scam Alert: Fake Emails Target Coinbase and Gemini Users

2025年03月17日

A new scam alert is making the rounds, tricking people into giving away their funds. If you’ve received an email telling you to move your assets from Coinbase or Gemini to a self-custody wallet, think twice before taking action.

Fake emails posing as Coinbase and Gemini trick users into using a pre-generated recovery phrase. Pay attention to the situation and beware of this scam alert.

How the Scam Works

The scam email instructs users to create a new wallet using the provided recovery phrase. But here’s the problem: whoever controls the recovery phrase controls the wallet. Scammers can drain everything once a user sets up the wallet and transfers funds.

The email even claims that Coinbase is now a registered broker and can no longer hold assets. This is entirely untrue.

Coinbase has already confirmed that this is a scam and has reminded users:

Gemini is also targeted with the same fake email, using similar wording to fool its users.

Why This Matters

Scam attempts like this are nothing new, but they’re getting more sophisticated. Blockchain security firm CertiK reports that phishing attacks cost crypto users over $1 billion in 2024 alone.

This isn’t the only scam happening right now. Hackers posing as business partners on fake Zoom calls have targeted some crypto founders. During the call, they send a message about an “audio issue” and trick victims into downloading malware.

How to Stay Safe from Crypto Scams
  • Never use a recovery phrase given to you by someone else.
  • Check every email communication with Coinbase or Gemini directly by their website instead of clicking on email links.
  • Be cautious of urgent deadlines—Scammers pressure people into acting fast.
  • If something feels off, don’t take action—Always double-check.

Conclusion

This scam alert shows that experienced crypto users are still susceptible to this scam. Scammers continue to develop intricate methods that require verification before taking action.

If you receive fake emails from Coinbase or Gemini, report them quickly. Remember that receiving a recovery phrase from anyone other than you represents a danger.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

Copyright Altcoin Buzz Pte Ltd.

The post Scam Alert: Fake Emails Target Coinbase and Gemini Users appeared first on Altcoin Buzz.