National Police Dismantles a Spanish Bitcoin Platform That Scammed 30 Million Euros - 16-03-25

he allure of easy and fast money, combined with widespread ignorance about cryptocurrencies, makes Bitcoin-related scams more common. The Bit4All platform has been raided by the National Police, accused of running a pyramid scheme with 400 bitcoins, worth 30 million euros.

Eight people have been arrested in Madrid, Málaga, and Murcia, and it is estimated that this cryptocurrency fraud affected more than 3,000 people, mostly from Spain.

During the raid, the police blocked 73 bank accounts, 12 cars, five motorcycles, a mobile phone, various computer equipment, and 1,500 euros in cash.

How the Alleged Bit4All Scam Worked
Bit4All offered an investment plan in cryptocurrencies with high returns in exchange for leasing bitcoins for a 12-month period.

In other words, you would "rent" one or more bitcoins for 12 months, and if the value of Bitcoin increased, you would receive part of the profits.

Although this model is not illegal, some conditions were suspicious, such as the lack of required identification to access the service, as no documents like ID cards were requested.

According to the National Police's press release, this cryptocurrency platform operated as a pyramid scheme, using a Ponzi scheme to function.

The profits of early investors were paid with funds from new members. But when they stopped attracting new clients, they prevented the previous investors from withdrawing their invested money.

At least 3,646 victims from 36 countries were involved in this investment project, of which 2,718 are residents of Spain. Around 400 Bitcoins have disappeared, raising the total amount of the scam to about 30 million euros.

As the police emphasize, one should never invest money in cryptocurrency companies offering risk-free investments, which are not registered with the CNMV (National Securities Market Commission), or lack a corporate address or offices.