Spanish courts have been swamped with lawsuits regarding cryptocurrency scams using Bitcoin and Ethereum-based platforms.
Cryptocurrency scam-related cases have increased in Spain
Spain is no stranger to the rising popularity of cryptocurrencies, which has attracted the attention of individuals and companies seeking to profit from the trend. Courts of Spain are now being flooded with cryptocurrency scam-related cases that are affecting thousands of citizens. According to local reports, there has been a significant increase in the amounts stolen. Scammers are always looking for areas or platforms to steal a large amount of money, and they have been successful in Spain.
Algorithms Group is one of the Ponzi schemes that was active in Spain
One of the biggest scams reported is linked to a company called Algorithms Group, which has scammed more than 280 million euros from more than 300 investors. Javier Biosca, the mastermind behind the scheme, operated as a broker, buying and selling bitcoins and promising weekly returns of 25% on investments. The firm, however, swiftly went sour, and Biosca vanished with the money of investors. According to Emilia Zaballos, a lawyer representing private investors, the scam may have affected 4,000 people.
Nimbus, another investment-based Ponzi scheme, is estimated to have defrauded 136 million euros from more than 4,000 investors in the country. The company, which also operated internationally, offered returns to investors for their deposits in cryptocurrencies. Other important companies that are facing similar trials are Kuailian and Arbistar 2.0, Ponzi schemes that also face money laundering charges.
There is a need for more organization
Emilia Zaballos, the lawyer that is in the Algorithms Group case, states that more organization is needed for facing this kind of scams. She is now pushing for the creation of new courts to deal only with this type of crypto-crime and for more guidance from established institutions in dealing with these structures. So far, national regulators have limited themselves to warn investors about the potential dangers of these investment tools, but they have not taken direct actions against them.