Spanish police arrest six over $20M AI-powered investment scam
Authorities in Spain have arrested six people who helped operate a global AI-powered investment scam that stole over $20 million from at least 208 victims.
The scammers would swindle victims up to three times. After stealing an initial sum through the investment scam, the fraudsters contacted victims twice more, masquerading as investment managers and then as authorities, offering to recover the stolen funds for a fee, Spanish police said in an April 7 statement.
The scammers used deepfake ads of “national personalities” promising high returns on crypto investments, and would occasionally pose as financial advisers or even feign romantic interest to lure in victims.
Experts have been warning of a rise in AI-enhanced scams. Blockchain analytics firm Chainalysis said in its Feb. 13 Crypto Scam Revenue 2024 report that generative AI is making “scams more scalable and affordable for bad actors to conduct.”
🚩Detenidas seis personas por estafar más de 19 millones de euros usando #inteligenciaartificial
🔴Engañaban a las víctimas a través de anuncios manipulados con #IA para que realizaran inversiones con #criptomonedas en productos supuestamente muy rentables pic.twitter.com/rMrdgBpOYz
— Policía Nacional (@policia) April 7, 2025
“Victims were not selected randomly; instead, algorithms selected those whose profiles matched the cybercriminals’ searches,” Spanish police said.
“Once they selected their victims, they placed advertising campaigns on the websites or social networks they used, offering them cryptocurrency investments with high returns and zero risk of asset loss — investments that, obviously, turned out to be a scam.”
When victims could not withdraw the funds, most realized it was a scam, according to Spanish police; however, the ruse didn’t end there.
Scammers would trick victims again with follow-up scams
The cybercriminals would then contact victims again, posing as investment managers, claiming the stolen funds were frozen and could be recovered if they paid a deposit.
“The victims, hoping to finally recover their money, made the deposit without realizing they had been scammed again,” Spanish police said.
The scammers would then contact victims a third time, this time posing as Europol agents or lawyers from the United Kingdom, offering to return the stolen funds if the victim paid the corresponding taxes in the country where it was blocked.
Related: Crypto broker breaks ankles while fleeing kidnappers in Spain
Spanish authorities arrested six people involved in the syndicate, charging them with fraud, money laundering and falsifying documents in a criminal organization.
During a raid on the alleged leader behind the scam, Spanish authorities seized numerous cell phones, computers, hard drives, a simulated weapon and extensive documentation.
Several people linked to the plot have also been identified in other countries, and the syndicate allegedly created a large number of fake companies to channel the stolen funds.
“Furthermore, the members of the organization used multiple false identities. In the case of the leader, for example, he used more than 50 different identities,” Spanish police said.
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The government of India may consider stablecoin regulations in its Economic Survey 2025-2026, while the Reserve Bank of India (RBI) takes a “cautious” approach to crypto and pushes for a central bank digital currency (CBDC), revealing a divergence in policy recommendations.
The government will “present its case” for stablecoins in the annual report published by India’s Ministry of Finance, which outlines key policy recommendations and the state of the economy, business publication MoneyControl reported, citing an official familiar with the matter.
However, the central bank continues to urge a “cautious” approach to stablecoins, according to RBI Governor Sanjay Malhotra. Speaking at the Delhi School of Economics on Thursday, he said:
“We have a very cautious approach towards crypto because of various concerns that we have. Of course, the government has to take a final view. There is a working group which was set up earlier, and they will make a final call as to how, if at all, crypto is to be handled in our country.”
Malhorta dismissed concerns that India needs to respond to stablecoin innovation led by the United States, following the passage of the GENIUS bill in June, because India has a robust domestic digital payments infrastructure, unlike the US.
This includes the Unified Payments Interface (UPI), a 24/7 payments network, the National Electronic Funds Transfer (NEFT), which settles payments hourly and is also available 24/7, and the Real-Time Gross Settlement (RTGS) system for large transactions, Malhorta said.
The government of India regulating cryptocurrencies would mark a significant departure from its long-held anti-crypto stance and would legitimize digital assets in the world’s most populous country, spurring crypto adoption and potentially raising asset prices.
Related: Indian court steps in over WazirX XRP distribution tied to 2024 hack
Officials continue to cast doubt on “unbacked” cryptocurrencies
In October, Piyush Goyal, India’s minister of commerce and industry, said the government neither encourages nor discourages cryptocurrencies, but he also cast doubt on crypto as an asset class.
Most cryptocurrencies do not have sovereign backing or underlying assets that give them value, Goyal said.
Magazine: India mulls new crypto ban to support CBDC, Lazarus Group strikes again: Asia Express
Consulting company Cornerstone Research reported a significant drop in the number of enforcement actions implemented by the current leadership of the US Securities and Exchange Commission, compared to that under the previous administration.
In a report released on Wednesday, Cornerstone reported that, under SEC Chair Paul Atkins, the number of enforcement actions against public companies and their subsidiaries decreased by about 30% in fiscal year 2025 compared to those in fiscal year 2024.
The company said the data was “consistent with the general pattern for other fiscal years when the SEC administration changed,” referring to former Chair Gary Gensler.
Although the financial regulator dropped investigations and lawsuits against several crypto companies following Gensler’s departure, the report only referenced the SEC’s case against Coinbase, dropped in February.
Earlier this week, the SEC’s Division of Examinations released its examination priorities for the fiscal year through 2026, not mentioning cryptocurrencies or digital assets.
“The dismissal is consistent with the stated priorities of the current SEC administration,” said Cornerstone. “Chair Atkins has signaled that a ‘top priority’ of his administration will be ‘to provide a firm regulatory foundation for digital assets through a rational, coherent, and principled approach.’”
Related: Crypto class actions on pace to nearly double in 2025
The SEC operated with limited staff for 43 days amid a US government shutdown that ended last week, curtailing its enforcement and oversight capabilities. Following its return to normal operations, the agency released its examination priorities for 2026 and continued reviewing applications for initial public offerings, exchange-traded funds, and other matters within its purview.
Awaiting market structure bill in Congress
As of Tuesday, Republican leaders on the Senate Banking Committee expected to pass a comprehensive bill on digital asset market structure by early 2026.
The initial timeline, anticipating the legislation being signed into law before the end of the year, was delayed by the government shutdown and pushback from Senate Democrats on DeFi provisions.
If passed, the law could grant the Commodity Futures Trading Commission significant authority to regulate digital assets. Atkins said that, under the SEC’s potential authority, it would not be “lax” on enforcement, likely including cases involving crypto.
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