Spanish Police Take Down $540 Million Crypto Scam Ring

Spanish authorities arrested five members of an international scam ring that stole up to $540 million. Operation BORRELLI targeted a shadowy group with victims in 30 different countries.

Police didn’t provide many key details about the group, such as how exactly they defrauded their victims. At the moment, it’s unclear whether or not any members remain at large.

Major Crypto Scam Ring Busted

Crypto scams are an endemic part of this industry, but they’re especially prevalent right now. Organized crime rings are operating worldwide, with some even receiving state backing.

Still, authorities are fighting back, just like Spanish police did in dismantling a crypto scam ring that stole up to $540 million:

“The organization’s leaders allegedly used a network of salespeople spread across the globe to raise funds through cash withdrawals, bank transfers, and crypto transfers. The criminal organization allegedly established an international corporate and banking network… to receive, store, and transfer criminal funds,” local authorities claimed in a press release.

The Guardia Civil claimed that this group defrauded up to 5,000 victims in 30 countries, using a Hong Kong-based firm to coordinate fraud and money laundering worldwide.

Spanish citizens only represented one-tenth of the scam victims and $45 million of losses. Still, many gang members lived in the country, and police arrested a broad swath of them.

According to local reporting, Spanish authorities arrested five members of this scam group in raids throughout Madrid and the Canary Islands.

The investigation involved cooperation with EUROPOL and 15 separate nations, most of which were not EU members. This shows the international scope of the group’s operations.

There are several recent examples of international cooperation in fighting crypto scams, but it’s still an uphill battle. Although Spanish police referred to the scam ring as “dismantled,” it clarified that the investigation is still open.

At the moment, it isn’t clear how many members remain active around the world, especially because it employed cutout firms in several countries. Could five people in one nation accomplish that alone?

In the recent French kidnapping string, Morocco-based masterminds directed local operatives to perform the violent assaults. These attacks have continued despite the overseas ringleaders’ arrests.

Spanish police may anticipate future scams, leading to a lack of relevant details. Still, it’s hard to say for sure. There isn’t publicly available evidence of the Spanish group’s true size.

Unfortunately, the announcement was light on specifics, but it contained valuable information nonetheless. If nothing else, the international community is taking a proactive approach to crimefighting.

More details will likely emerge during court proceedings.