The National Police has issued a warning for a cryptocurrency-related investment scandal in Spain. The amount of damage that has recently been done to such investments is € 240,000 related to just two complaints. However, the popularity of these financial instruments has now led to an increase in complaints presented by citizens.
The National Police warns of a crypto scandal in Spain
Spain’s national police have issued a warning to citizens about the rise of cryptocurrency-related scandals in recent days. National police alone have found in two recent allegations, crypto investors have lost € 240,000 (~ 8 278,385). These two complaints came from the city of Navara.
This is because the market is flooded with companies that offer cryptocurrency investment opportunities that guarantee high levels of returns. But to guarantee this return, companies want a higher amount of money as an investment. Many of these companies have profiles of thousands of followers on social media, which gives the impression of legitimacy to these investors.
They manage to entice investors to keep money on these platforms, and then, for a while, their digital platforms show an expected increase in invested capital. But when investors try to withdraw these funds, they see that it is impossible to do so. These platforms then ask for huge sums of money to raise funds and then the users know that they have been deceived.
How to avoid being a victim of scandal
The National Police has made a series of recommendations to avoid falling victim to an investment scandal. First, it recommends that potential investors research the background of the company or platform on which they rely on their funds. Users should make sure that these companies are solvents, and do not mention them in any of the warnings issued by the authorities on the investment platform.
However, if investors find themselves caught in a potential scandal, the police quickly recommend filing a complaint with the authorities. Police explained that “the promptness in identifying the crime committed facilitates his investigation.”
Spain was not unfamiliar with the recent cryptocurrency boom. Local media reported that the tribunals were flooded with crypto-related cases last June. But crypto fever has not entered the highest field of investment. Until May, Spain’s largest asset managers were still reluctant to invest in crypto.
What do you think of the National Police’s warning about the cryptocurrency investment scandal in Spain? Tell us in the comments section below.
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