ALLEGED FRAUDSTERS in Alicante have been arrested for their part in a SEVEN MILLION euro crypto currency scam.
Policia Nacional detained the four, two men and two women, for taking virtual currencies with the promise of shrewd investment and keeping it for themselves.
With ages between 23 and 36, their nationalities are Spanish, Italian and Argentinian.
The agency responsible for investigating financial crimes had detected various internet transactions after the frauds were reported by a number of victims.
All had said crypto currencies were transferred to a company that offered to invest on their behalf with the promise of high returns.
Small amounts of interest were originally paid out, but police say those funds were merely from others that were duped into sending money.
More than 380 victims were uncovered, with the scammed money totalling more than seven million euros.
Once tracked down, they were arrested for the alleged crime of fraud, with computers, tablets and telephones being seized.
One had fled to Cuenca, 200km inland from Valencia, after victims started threatening him after being conned.
The investigation remains open as investigators are aware that there are more victims of this scam.
What is cryptocurrency?
They are a type of virtual currency used as a payment system on the internet.
Its main feature is that it preserves the anonymity of those who use it and the transactions carried out are fully encrypted and confirmed.
It is an intangible currency although it can be used as a means of payment just like physical money.
To do this, they use digital encryption for their operations, with which economic transactions can be carried out without the need for intermediaries.
Until now, a multitude of types of cryptocurrencies have appeared, creating a new market in which more and more people invest and use for their financial management.