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Arbistar, Bitcoin, Cryptocurrency, emilia zaballos, Ethereum, kuailian, Ponzi scheme, scam, Spain, Spanish encryption scam, Spanish encryption, court
Spain is no stranger to the popularity of cryptocurrency, and with this popularity, it has also attracted the attention of people and organizations who want to take advantage of the subject. Recently, Spanish courts are flooded with lawsuits involving cryptocurrency scams related to platforms based on Bitcoin and Ethereum, and people who use these scams defraud other users for millions of euros.
According to local reports, Spanish courts are currently flooded with cases related to cryptocurrency fraud, which affects thousands of citizens. With the recent increase in the price of cryptocurrencies, scammers have been seeking to make quick money and have achieved success in Spain. One of the biggest scams reported was a scam related to a company called Algorithms Group, which defrauded more than 300 investors of 280 million euros.
The brain behind this scam is a man named Javier Biosca, who acts as a broker to buy and sell cryptocurrencies and provides 25% weekly interest on each investment. However, the business deteriorated rapidly, and Biosca disappeared with investors’ money. Emilia Zaballos, a lawyer representing private investors, said the scam may have affected 4,000 people. She emphasized:
There are all kinds of people affected. From notaries, lawyers, national police, businessmen, to tax inspectors, and even judges. There are also domestic workers, retirees and unemployed people. And great destiny.
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 also operates internationally, providing returns for investors’ cryptocurrency deposits. Other important companies facing similar trials are Kuailian and Arbistar 2.0, and the Ponzi scheme is also facing money laundering charges.
Emilia Zaballos, a lawyer involved in the Algorithms Group case, said that more organizations are needed to deal with this scam that affects more citizens every day. She is now pushing for the establishment of new courts only to resolve this encryption-related crime and to provide more guidance to established institutions when dealing with these structures. Until now, national regulators are still restricting their actions to alert investors of the potential dangers of using these investment tools, but they have not taken any direct action against them.
But she is not just waiting for action. Zaballos is the president of an organization called “Asociación de Afectados por Inversiones por Criptomonedas”, which groups users affected by these organizations and helps them take legal action against them.
What do you think of the rise of cryptocurrency scams in Spain? Let us know in the comments section below.
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