Spanish law enforcement has successfully dismantled an elaborate cryptocurrency investment scam that impacted over 200 victims, resulting in losses exceeding €19 million (approximately $21.5 million). The operation utilized artificial intelligence to deceive potential investors with fraudulent endorsements from celebrities.
This extensive investigation, spanning two years, culminated in the arrest of six individuals in various locations throughout Spain, as reported by the Spanish National Police.
Investigation Triggered by Loss of €624K Reported by Granada Resident
The probe was initiated after a man from Granada filed a complaint regarding his substantial loss of €624,000 ($700,000) linked to suspected cryptocurrency investment fraud.
As investigators delved deeper, they uncovered a broader scheme that relied on AI-generated videos featuring familiar public figures to persuade unsuspecting victims to invest in seemingly lucrative crypto projects.
To maintain the facade, the scammers informed their targets that additional payments were necessary to access their initial investments, further extending the deceit.
While police did not disclose specific cryptocurrencies involved in this scam, they advised the public to remain vigilant when confronted with high-return digital currency schemes.
The alleged mastermind of the operation was apprehended while attempting to flee to Dubai.
The suspects, who range in age from 34 to 57, are now facing multiple charges, including fraud, money laundering, and document forgery.
Authorities have not yet confirmed if any of the misappropriated funds have been recovered, and the investigation is still active.
This case underscores a troubling trend in cybercrime involving cryptocurrencies, where deepfake technologies and celebrity impersonation are increasingly leveraged to market fraudulent investments.
The rise of similar scams is alarming, with criminals taking advantage of the public’s trust in well-known personalities to promote meme coins and engage in pump-and-dump schemes.
Recently, Guns N’ Roses guitarist Slash announced his decision to depart from the social media platform X after his account was compromised and used to advertise a false crypto scheme.
pic.twitter.com/8Cofi1BKZf
— Slash (@Slash) April 9, 2025
Increasing Incidents of Crypto Social Media Hacks Amid Meme Coin Schemes
In a related event, the popular crypto news outlet Watcher.Guru confirmed last month that their official X account was hacked, leading to a misleading post about a potential agreement between Ripple and SWIFT circulating on their platforms, potentially influencing interest in XRP.
This hacking episode is part of a larger wave of attacks on crypto-centric social media accounts, many of which aim to manipulate the market for newly launched meme coins.
In February, Dior’s Instagram account was also hijacked to promote a fraudulent Solana-based token, which momentarily had a market cap of $280,000 before experiencing a dramatic collapse of 90%.
Just last week, Kaito AI, a platform utilizing artificial intelligence for crypto market analysis, along with its founder Yu Hu, fell victim to a hacking incident on X.
Hackers gained access to the account and falsely asserted that Kaito AI’s wallets had been compromised, issuing warnings to users regarding potential risks to their funds.
According to a recent report by blockchain security leader Immunefi, losses within the crypto ecosystem surged by 20 times from January to February 2025, reflecting a broader crisis.
In January, documented losses reached $73,915,700, whereas by February, the total skyrocketed to $1,528,342,400, resulting from nine hacking incidents.
This February figure represents an 18-fold increase compared to the same month in the previous year, when losses stood at $81,603,400.
The post Spanish Police Bust AI-Powered Crypto Scam Ring That Defrauded Victims of €19M appeared first on Cryptonews.
