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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Hashdex Seeks SEC Approval to Add Litecoin to Crypto Index ETF

2025年03月18日

Key Takeaways:

  • Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing investors to reconsider diversification strategies.
  • Hashdex’s move could open the door for major investors to explore altcoins, reshaping crypto investment priorities.
  • Litecoin’s inclusion challenges the Bitcoin-Ethereum dominance, pushing investors to reconsider diversification strategies

Crypto asset management firm Hashdex submitted an amendment proposal to the U.S. Securities and Exchange Commission (SEC) last Friday to add Litecoin (LTC) to its Hashdex Nasdaq Crypto Index US ETF.

If approved, Litecoin will join the ETF’s other proposed digital assets, broadening its exposure to the traditional financial market and institutional investors within a regulated environment.

Litecoin Gains ETF Exposure as Hashdex Seeks Broader Crypto Holdings

The March 14 filing, filed under file number 333-280990, outlined Hashdex’s plans to expand its Crypto Index ETF portfolio beyond Bitcoin and Ethereum.

The revised index is expected to include additional cryptocurrencies such as Solana (SOL), Ripple (XRP), Cardano (ADA), Chainlink (LINK), Avalanche (AVAX), Litecoin (LTC), and Uniswap (UNI), with each operating on its respective blockchain network.

Particularly, the addition of Litecoin would further diversify the fund’s holdings and attract investors interested in a wider array of cryptocurrencies.

An exchange-traded fund (ETF) is a basket of assets—such as stocks, bonds, or cryptocurrencies—traded on stock exchanges.

It allows investors to buy and sell shares throughout the day, offering diversification by spreading risk across multiple assets.

Hashdex’s proposal to add Litecoin isn’t random. Litecoin has been around for over a decade, often seen as Bitcoin’s lighter, faster counterpart.

Its features, such as its popularity, strong liquidity, and lower transaction fees, make it an interesting addition to an ETF.

If this gets the green light, it would be another step towards integrating crypto with traditional finance, which would give both big institutions and everyday investors more options to diversify their portfolios.

Brazil ETF Approval Highlights Hashdex Expansion Strategy

Recently, Hashdex secured approval from Brazil’s Securities and Exchange Commission to launch the world’s first XRP spot ETF on the B3 stock exchange.

This approval allows Brazilian investors to gain exposure to XRP through a regulated investment vehicle.

Hashdex continues to provide more crypto investment options while signaling increasing institutional acceptance of digital assets.

The Hashdex Nasdaq XRP Index Fund was officially established on February 18, 2025, and Genial Investimentos was appointed its administrator.

While a U.S. launch date for the expanded ETF remains undisclosed, the broader crypto ETF market is becoming increasingly competitive.

Since Bitcoin and Ethereum spot ETFs received approval in 2024, fund issuers have accelerated efforts to broaden their offerings.

SEC Decision on Litecoin Could Boost Hashdex Crypto Index ETF Expansion

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 90% likelihood of Litecoin ETF approval before the end of 2025.

Their prediction places Litecoin ahead of Solana (70%), Dogecoin (75%), and XRP (65%).

They argue that Litecoin’s proof-of-work mechanism, similar to Bitcoin’s, and its existing regulatory filings could streamline the approval process.

Demand for crypto ETFs has surged, with spot Bitcoin and Ether ETFs attracting $40.7 billion and $3.18 billion in net inflows since their launches.

While a Litecoin ETF may not see the same demand, Seyffart notes that even modest inflows could make it viable for fund issuers.

The SEC’s final decision on Litecoin, Solana, XRP, and Dogecoin ETFs is expected between October 2 and 18, a timeline closely watched by investors and fund issuers looking to expand the reach of crypto index ETFs.

Frequently Asked Questions (FAQs)

How does Litecoin’s classification as a commodity impact its chances of ETF approval?

Since Litecoin is considered a commodity rather than a security, it avoids the tougher regulations and doubts that securities may face in the same situation. This makes it easier to get approval since it sidesteps the SEC’s stricter oversight on securities branded cryptocurrencies.

What are the risks of a Litecoin ETF?

Among the risks known primarily to ETFs is their reliance on third parties to store assets safely. These parties are often centralized and leave space for potential price manipulation due to crypto’s volatility and liquidity issues.

Could a Litecoin ETF lead to more altcoin ETFs?

Yes, if Litecoin’s ETF gets approved, it could pave the way for others like Solana and XRP. A green light from regulators would show they’re open to approving beyond Bitcoin and Ethereum, which would mean they are now open to altcoins, too.

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