The National Police of Spain has warned of a wave of crypto fraud in the country. The amount lost on such investments recently is € 240,000 related to just two complaints. However, due to the popularity, these financial instruments are now experiencing, complaints from citizens have increased.
The Spanish National Police have warned citizens of the surge in cryptocurrency-related scams in recent days. In the two more recent complaints received by the national police alone, crypto investors lost € 240,000 (~ $ 278,385).
These two complaints come from the city of Navarre.
The reason behind this crypto fraud is that the market is flooded with companies that offer investment opportunities in cryptocurrencies that guarantee high returns. However, to guarantee these returns, companies charge large sums of money as an investment.
Many of these companies have social media profiles with thousands of followers, giving these investors a sense of legitimacy.
They manage to entice investors into putting money into these platforms, and then their digital platforms show a supposed growth in invested capital for a while.
However, when investors try to withdraw these funds, they find it impossible to do so. So these platforms then ask huge sums of money to withdraw funds, and then the users know that they have been scammed.
National Police guiding amist the crypto fraud
The National Police made several recommendations to avoid falling victim to investment fraud. First, it recommended that potential investors read up on the background of the company or platform they are entrusting their funds to.
Users should ensure that these companies are solvent and not mentioned in any warning from authorities on investment platforms.
“The immediacy of the detection of the crime committed facilitates the investigation.”– National Police of SpainSpain National Police raises caution against Crypto fraud
However, should investors become involved in potential fraud, the police recommend quickly filing a complaint with the authorities.
The football-crazy Spain was no stranger to the recent cryptocurrency boom. Local media reported that tribunals were flooded with crypto-related cases last June. But the crypto fever has not penetrated the highest investment spheres. In May, the largest wealth managers in Spain were still reluctant to invest in crypto to avoid crypto fraud.
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