Cryptocurrency Scam: Guardia Civil Dismantles a Criminal Organization

According to reports, Spain’s oldest law enforcement agency, Guardia Civil, recently dismantled a criminal organization planning a large-scale cryptocurrency scam. Illegal elements have misappropriated over 100 million euros (110 million US dollars) from over 3000 people worldwide.

Guardia Civil Destroys $110 Million Cryptocurrency Fraud

Table of Contents

1. Introduction
2. Background on Cryptocurrency Scams
3. The Scam and How It Operated
4. Guardia Civil’s Investigation and Dismantling of the Criminal Organization
5. Measure to Prevent Cryptocurrency Scams
6. Conclusion
7. FAQs

The Article

Introduction

An organized criminal group has recently been exposed and dismantled by Guardia Civil. The group had used a cryptocurrency scam to extort money at a massive scale from over 3000 people across the globe, misappropriating more than 100 million euros (110 million US dollars). This article puts more focus on the cryptocurrency scam carried out by the group before exposing how Guardia Civil was able to dismantle the group.

Background on Cryptocurrency Scams

Cryptocurrency is a form of digital currency that is encrypted using cryptography, making it difficult to counterfeit or double-spend. Cryptocurrency exchanges and platforms have become lucrative avenues for scammers over the years. Scammers have had different approaches, but all have used the anonymity of the technology and the lack of clear laws or regulations governing the currency to perpetrate their scams.

The Scam and How It Operated

The scam was initiated after the criminals created a false cryptocurrency exchange, which was targeted at unsuspecting victims. They displayed a prototype of a trading platform that looked real, giving the victims an impression that it was a legitimate business. After lying to the victims of the exchange’s legitimacy, they lured them to invest their funds in the platform with the promise of “guaranteed” returns on investment.
Once the victims had given the criminals’ cryptocurrency or cash that was converted to crypto, the criminals would make sure the victims never recovered it. Some victims were given some returns as a showcase of the legitimacy of the investment, only to stop paying returns in a little while. Others had to suffer at the hands of phoney trading markets that showed their investments worth many times higher only to realize that the criminals had been manipulating the prices.

Guardia Civil’s Investigation and Dismantling of the Criminal Organization

The investigation unit had initially alerted Guardia Civil of a possible cryptocurrency scam by an organized group at the beginning of 2020. The criminals kept on changing the name of their company to deter identification. Still, the investigators were able to identify the phone numbers, emails, site registrations, and ultimately, the people behind the scam. Guardia Civil’s Financial Analysis and Investigation group collaborated with other agencies to join forces and ultimately hunted down twelve individuals, who were part of the criminal organization.

Measures to Prevent Cryptocurrency Scams

Cryptocurrency platforms have been urged to invest heavily in security features like firewalls, secure sockets layers (SSL) and two-factor authentication (2FA) to keep criminals at bay. Governments are also starting to regulate cryptocurrencies to prevent future scams.

Conclusion

Cryptocurrency scams have been a considerable source of concern for investors worldwide. It is necessary to be cautious and careful with such investments. If this provokes any suspicion, it is best to communicate with trusted and established financial institutions, banks and investment firms. This recent action by Guardia Civil signifies that fraudsters will not operate freely without being tracked and punished accordingly.

FAQs

Q: How can investors identify cryptocurrency scams beforehand?
A: Cryptocurrency scams often promise huge returns to investors and adopt complex schemes that can be baffling, while there is no such thing as a guarantee of high returns in the financial world, especially in cryptocurrencies.
Q: Can I invest in cryptocurrency and still be safe?
A: Yes, you can still invest in cryptocurrency, but you have to carry out your research investigation appropriately.
Q: Why is cryptocurrency vulnerable to fraud?
A: Cryptocurrency is vulnerable because of its anonymity, providing an easy means for scammers to operate in the shadow, make fraudulent promises, take money or cryptocurrency, and vanish.