Spain and LATAM Cryptocurrency Fraud 2024
Investment opportunities and developers with innovative ideas abound in the crypto space. They’re also exploiting the market’s youth and lacking rules.
It seems that every year, the number of people affected by cryptocurrency scams in Spain and LATAM increases. It is estimated that in 2024 more than 1 billion euros were defrauded, mainly through impersonators, carpet pullers and fake platforms.
This figure is part of the growing global trend of crypto scams. Some are novel, such as the pig butchering scam that resulted in $11 billion in losses last year. Others are more traditional, like phishing and spoofing, which make up 90% of all fraud.
Due to the lack of a specific regulatory framework, but also due to the lack of prevention, bitcoin and cryptocurrency scams are common. Starting with buying cryptocurrencies on regulated platforms, simple security measures are enough to avoid most scams.
To avoid cryptocurrency scams, prevention is fundamental. In any operation, whether P2P or DeFi, it is crucial to verify the legitimacy of the counterparty. Two basic security measures are to always operate on regulated platforms and not to share private keys.
Fraudulent Website in Spain
In early 2024, a resident of Palencia lost 30,000 euros in cryptoassets in a scam, according to local media in Spain. Investigators cited an unregulated platform as the focus of the scam involving bitcoin and other cryptocurrencies, although they did not name it.
Techniques such as mass network spamming were used by the scammers. At the end of the process, the victims provide personal information in order to register on the platform, where winnings are simulated. These winnings cannot be withdrawn, and in the end, the funds that were deposited cannot even be recovered.
Identity Theft in Argentina
In May 2024, Infobae reported on a bitcoin scam worth 1.25 million dollars. According to police in Buenos Aires, where he was arrested, a Chilean and a Mexican citizen were victims of a scheme led by Fernando Gaston Barbatelli, a “known fraudster.”
Barbatelli resorted to impersonation in order to fraudulently obtain the cryptocurrencies of the victims, working in collaboration with at least three people who were arrested in the Argentine capital. During the arrest of the accomplices, more than 50 wallets were seized.
Pyramidal Scam in Spain
In the financial sector, including the crypto market, Ponzi schemes are common. In April 2024, a criminal organization specialized in this type of fraud was broken up in Spain. More than 40 bank accounts were seized and up to 11 people involved in the scheme were arrested.
The fraudsters may have been fraudulently accumulating funds for at least six years, as the pyramid structure appears to have originated in 2018. Detectives estimate that the more than 160 people affected by the fraud have lost approximately €5 million over that period.
Memecoin Scam (Pambicoin)
In June 2024, Daniel Santomé (known on YouTube as Dalas Review) played a starring role in one of the most discussed alleged memecoin scams of the year. The crypto community singled out the youtuber for allegedly teaming up with Fernando Urdaneta and Raed Beiruti for the launch of his own token: PAMBI.
The victims lost more than $170,000 in a textbook pump and dump, according to media reports. Despite being sued, Santomé turned a corner and is still posting content on a YouTube channel that boasts over 11 million subscribers.
Is It Possible to Prevent Crypto Scams?
Cryptocurrency scams are common, though not much more so than in other sectors. Much of the success of scammers lies in the lack of prevention on the part of victims. Getting educated about cryptocurrencies and following minimum security guidelines will reduce the risk.
By Leonardo Perez