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Spanish authorities have arrested six people in connection with a 19 million euros ($20.74 million) cryptocurrency fraud scheme that used AI-generated ads and fake celebrity endorsements to lure over 200 victims. The gang reportedly tricked victims into investing in cryptocurrency products they claimed were highly profitable, the National Police announced.
The operation was complex, involving a web of international financial transactions, shell companies, and more than 50 fake identities used by the group’s leader. Those arrested face charges including fraud, money laundering, and document forgery.
The alleged ringleader, who was planning to flee to Dubai, ran a nationwide operation that used fake identities, shell companies, and AI-driven targeting to identify and scam potential victims
The arrests were part of a joint operation by the Spanish National Police and the Civil Guard. Officers conducted coordinated raids in Granada, Alicante, and other locations, dismantling the network and seizing evidence.
The case began when a man in Granada reported losing $682,000 to a fraudulent investment scheme. A parallel investigation into document fraud in Alicante led to a breakthrough, prompting both agencies to merge efforts and uncover the larger criminal operation.
Investigators said the fraudsters used a sophisticated algorithm to identify ideal victims, who were then shown personalized investment ads on websites and social networks. Once hooked, victims were shown fake profits to gain trust and were urged to invest more, sometimes converting all of their savings into cryptocurrency.
Scammers posed as advisors or romantic partners and used fake websites that maintain the illusion. When victims attempted to withdraw their money, they faced delays and were told their money had been frozen. The fraudsters then posed as Europol agents or British lawyers, claiming the funds could be recovered—if victims paid tax or fee. Many were defrauded a second time.
The investigation continues under the direction of the cybercrime prosecutor in Granada.
