Spain: Europol Dismantles €460M Crypto Fraud Scheme – A Deep Dive into the Scam
- How Did This €460M Crypto Ponzi Scheme Operate?
- What Role Did Europol Play in Busting the Scam?
- What Does This Case Reveal About Crypto Regulation in Europe?
- Is This the Only Crypto Fraud of Its Kind?
- Frequently Asked Questions
In a landmark operation, Spanish authorities with Europol’s support have cracked down on a massive €460 million cryptocurrency Ponzi scheme. The fraud, orchestrated by David Merino, lured victims with fake crypto investments, laundering money through shell companies and offshore platforms. This case highlights the growing need for stricter crypto regulations in Europe, with Spain leading the charge under DAC8 directives. Read on for a detailed breakdown of the scam, its international reach, and what it means for the future of crypto oversight.
How Did This €460M Crypto Ponzi Scheme Operate?
The scam followed a classic pyramid model: early "investors" were paid with funds from new entrants, creating an illusion of legitimate returns. David Merino, the mastermind, used a network of shell companies and opaque platforms based in Hong Kong to funnel €460 million through cryptocurrencies, wire transfers, and even cash. The scheme collapsed when the Flow of new victims dried up, leaving thousands defrauded across Spain and beyond.
What Role Did Europol Play in Busting the Scam?
Europol coordinated a multi-phase international operation involving Spanish Guardia Civil, Estonian, French, and US authorities. Raids in Madrid and the Canary Islands uncovered critical evidence, while investigations traced money flows to Dubai. The operation’s success hinged on cross-border collaboration – without it, dismantling such a sophisticated network (using crypto mixers and layered intermediaries) would have been nearly impossible.
The Spanish Guardia Civil, with the support of Europol and police from Estonia, France and US have dismantled a criminal network engaged in cryptocurrency investment fraud. Read more
https://t.co/yiUKyW1TI2 pic.twitter.com/fIKXO0DbYJ — Europol (@Europol) June 30, 2025
What Does This Case Reveal About Crypto Regulation in Europe?
Timing is everything: Spain’s 2025 implementation of DAC8 crypto reporting rules proved crucial. The case strengthens the EU’s resolve to enforce MiCA regulations and blockchain monitoring tools. As the BTCC team notes, "This isn’t 2017’s Wild West anymore – authorities are finally catching up with crypto’s dark side." The operation sets a precedent for future crackdowns on similar schemes like OneCoin or FTX-style frauds.
Is This the Only Crypto Fraud of Its Kind?
Far from it. This case joins a growing list of high-profile crypto scams, but marks a turning point in enforcement capabilities. While the crypto space still sees meme coins like BTCbull generating hype, authorities now have both the tools and political will to pursue complex investigations. The message is clear: fraudsters might innovate, but so do regulators.
Frequently Asked Questions
How much money was stolen in this crypto scam?
The fraud totaled €460 million, laundered through cryptocurrencies, wire transfers, and cash across multiple countries.
Who was behind the Ponzi scheme?
Spanish authorities identified David Merino as the mastermind, operating through shell companies and offshore platforms in Hong Kong.
Which agencies were involved in the investigation?
Europol coordinated efforts between Spain’s Guardia Civil and police forces from Estonia, France, and the United States.
What makes this case significant for crypto regulation?
It demonstrates the effectiveness of new EU tools like DAC8 and MiCA during Spain’s first year of implementation, setting a precedent for future enforcement.
