Agents of the Civil Guard and the National Police have arrested the chief executive of a company, based in the Canary Islands, which allegedly defrauded through investments in cryptocurrencies using a Ponzi-type scam.
They found three high-end vehicles, abundant documentation and electronic devices, while blocking numerous bank accounts under the name of the investigated persons.
The Ponzi scam is a fraudulent investment operation involving the payment of interest to investors of their own invested money or the money of new investors. This scam consists of a process in which the profits that the pioneer investors obtain are generated thanks to the money contributed by themselves or by other new investors who are deceived by the promises of obtaining, in some cases, great profits. The system only works if the number of new victims increases.
This research has focused on a company that offered software that allowed programming investment strategies in cryptocurrencies and trading 24 hours a day without interruption. At the same time, the company had set up a system for channelling money in cryptocurrencies, through digital purses, in such a way that they distracted control of the investments made by the company’s clients.
