Spanish authorities have dismantled a sophisticated crypto investment scam that defrauded over 200 victims out of more than €19 million ($21.5 million), using artificial intelligence to lure investors with fake celebrity endorsements.
The two-year investigation led to the arrest of six individuals across Spain, according to a statement from the Spanish National Police.
Crypto Scam Probe Launched After Granada Man Loses €624K in Fraud
The investigation began when a man from Granada reported losing €624,000 ($700,000) in a suspected crypto investment fraud.
From there, authorities uncovered a wider scheme that used AI-generated videos of well-known public figures to convince unsuspecting individuals to invest in what appeared to be a high-return crypto venture.
To sustain the illusion, the perpetrators told victims that additional payments were required to unlock their original investments, thereby perpetuating the fraud.
Police did not specify which cryptocurrencies were involved but warned citizens to exercise caution with high-return digital asset schemes.
The alleged leader of the criminal operation was arrested while attempting to flee to Dubai.
The suspects, aged between 34 and 57, are now facing charges of fraud, money laundering, and falsifying documents.
Police have not yet confirmed whether any of the stolen funds have been recovered, and the investigation remains ongoing.
The case highlights a growing trend in crypto-related scams, where AI-generated deepfake videos and hijacked celebrity identities are increasingly used to promote fraudulent investments.
Similar scams have been on the rise, with criminals exploiting public trust in recognizable figures to push meme coins or pump-and-dump schemes.
Just this week, Guns N’ Roses guitarist Slash announced his departure from social media platform X after his account was compromised and used to promote a fake crypto scheme.
Last month, the widely followed crypto news outlet Watcher.Guru confirmed that its official X account was hacked after a fake post about a potential deal between Ripple and SWIFT spread across its social media channels, potentially affecting interest in XRP.
The incident came amid a broader trend of crypto-focused social media hacks, many of which are used to pump newly launched meme coins.
In February, Dior’s Instagram account was hijacked to promote a fake Solana-based token, which briefly reached a $280,000 market cap before plummeting 90%.
Last week, Kaito AI, an artificial intelligence-driven platform providing crypto market analysis, and its founder, Yu Hu, were also targeted in a social media hack on X.
Hackers took control of the account and falsely claimed that Kaito AI’s wallets had been compromised, warning users that their funds were at risk.
In February 2025, losses in the crypto ecosystem increased by 20x month-over-month compared with January 2025, according to the latest report by major blockchain security platform Immunefi.
In January, registered losses stood at $73,915,700. Just a month later, this figure jumped to $1,528,342,400. The latter was the result of nine hacks.
Additionally, the February number is an 18x increase from the same time a year prior. In February 2024, registered losses were $81,603,400.
The post Spanish Police Bust AI-Powered Crypto Scam Ring That Defrauded Victims of €19M appeared first on Cryptonews.
