Spain Dismantles $540M Crypto Scam Ring in Global Crackdown

Spanish authorities have dismantled an international crypto fraud network, arresting five individuals linked to a Hong Kong-based company accused of defrauding over 5,000 victims worldwide. The scheme, operating under the guise of FOREX market investments, allegedly laundered nearly $540 million through cash withdrawals, bank transfers, and cryptocurrency transactions.

Operation BOREELLI uncovered a sophisticated money-laundering apparatus involving shell companies and payment gateways. Spanish nationals alone lost $42 million, while global losses approached $500 million. A significant cache of cryptocurrencies was seized during raids in Madrid and the Canary Islands.

The organization employed a decentralized fundraising model, using sales agents to funnel illicit proceeds through a web of corporate entities. This case highlights the growing intersection of traditional financial fraud and cryptocurrency-enabled money laundering.