Spain has been no stranger to the popularity of cryptocurrency, and with this popularity, comes the attention of people and organizations looking to capitalize on the topic. Spanish tribunals have recently been flooded with lawsuits involving cryptocurrency scams involving bitcoin and ethereum based platforms, and people using these to scam other users for millions of euros.
Cryptocurrency related scandal flood tribunal in Spain
According to Local, Spain’s tribunals are now full of cases related to cryptocurrency scams affecting thousands of citizens. reports. With the recent rise in cryptocurrency prices, scammers are always looking to make quick money, and they have been successful in Spain. One of the biggest scams reported is involving a company named Algorithm Group, which scammed over €280 million from 300+ investors.
The scandal is the brain behind a man named Xavier Biosca, who worked as a broker to buy and sell cryptocurrencies and offered weekly interests of 25% per investment. However, the business quickly soured and the biosca disappeared with investors’ money. Emilia Zablos, a lawyer representing private investors, says as many as 4,000 people could have been affected by the scam. He insisted:
Affected people include all types of people. From notaries, lawyers, the national police, businessmen to tax inspectors and even judges. But also domestic workers, retired and unemployed. And great luck.
Nimbus, another investment-based Ponzi scheme, estimates that it has defrauded 136 million euros from more than 4,000 investors in the country. The company, which also operates internationally, offered investors returns for deposits in cryptocurrencies. Other important companies facing similar trials are Kuailian and arbistar 2.0, Ponzi schemes that also face charges of money laundering.
need more organization
Emilia Zabalos, a lawyer in the algorithmic group case, says more organizations are needed to counter such scam schemes that affect more citizens each day. She is now insisting on the establishment of new courts to participate in such crypto-related crimes and for more guidance from established institutions to deal with these structures. So far, national regulators limit their actions to alert investors to the potential dangers of using these investment instruments, but they have not taken any direct action against them.
But she’s not just waiting for action. Zaballos an. is the president of Organization Called “Associacion de Affectados por Inversions por Cryptomonadas”, which groups users affected by these organizations and helps them take legal action against them.
What do you think about the rise of the cryptocurrency scandal in Spain? Let us know in the comments section below.
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