AI-Generated Celebrities and Cryptocurrencies: Network Defrauding €19 Million from Alicante Dismantled

In Granada, a man's report of a €624,000 fraud led to the dismantling of a criminal network that allegedly defrauded €19 million from 208 victims through fake cryptocurrency investments. The criminals used artificial intelligence to create bait: advertisements featuring Spanish celebrities recommending secure, high-yield operations. They operated from the province of Alicante, according to investigation sources.

The financial, technological, and advertising structure extended globally, despite the criminal group operating from Alicante. The network created numerous companies across the country to channel money from the fraud and used false identities to evade justice. In fact, the ringleader used 50 different identities before being arrested while preparing her escape to Dubai, a haven for major criminals.

'Operation Coinblack-Wendimine', executed by the National Police of Alicante and the Civil Guard of Granada, resulted in the arrest of six alleged members of the network, aged between 34 and 57, in Alicante, Torrevieja, Santa Pola, and La Vila. They are charged with fraud, money laundering, and document forgery in a criminal organization. The leader has been imprisoned. Additionally, several individuals related to the network have been identified in other countries, and the investigation remains open.

The operation was conducted in various locations in Granada and Alicante. During the investigation, a total of 208 fraud offenses were clarified, and over €100,000 has been blocked so far. Authorities searched the leader's residence in Spain and seized numerous mobile phones, computers, hard drives, a simulated weapon, and abundant documentation.

The network placed advertisements on various websites as bait related to cryptocurrency investments. The victims were not chosen randomly; algorithms selected individuals whose profiles matched what the cybercriminals were looking for.

Once they selected their targets, they placed advertising campaigns on those websites or social networks that the targets used, offering cryptocurrency investments with high returns and no risk of financial loss, which were, of course, a scam.

With the help of AI, the fraudsters simulated ads where a large number of national personalities could be seen and heard advising investing money in such products, which made the victims trust much more in the security and profitability of the investment.

With the first investment, which was generally small amounts, the victims believed they were achieving the high returns promised, as they received the profits in their accounts, encouraging them to continue with more investments. The cybercriminals gained their trust by posing as financial advisors, and sometimes even simulated romantic relationships, besides sending false information through fake websites with fictitious returns. They encouraged them to transfer all their money into cryptocurrencies.

When the victims decided to withdraw the money they had invested, obstacles and impediments began, at which point they realized they had been scammed. However, the scam continued. After some time, the cybercriminals contacted the targets again, posing as investment managers and confirmed that the money was blocked, but it was possible to recover it, although a new deposit was required, often a significant amount. The victims, hoping to finally recover their money, made the deposit without realizing they had been scammed again.

But the damage did not end there, as the next phase of the scam was still to come. The victims, who had reported the incidents to the National Police or the Civil Guard, hoped to receive favorable news about the recovery of their money.

At that moment, they received communication from fake Europol agents or fake UK lawyers, indicating that they had managed to recover their money and that the only thing missing was the payment of the corresponding taxes to the country where it was blocked. Once again, believing that this time they would recover their investment, they agreed to pay the supposed taxes.

The operation, under the direction of the Delegate Prosecutor for Technological Crimes of Granada, was carried out jointly by the Unit against Immigration Networks and Document Falsifications (UCRIF 3) of the National Police of Alicante and the Technological Crimes Investigation Team (EDITE) of the Civil Guard's Judicial Police Unit of Granada.

The National Police and the Civil Guard remind citizens of the importance of taking extreme precautions against investment offers that promise high and risk-free returns. In particular, they warn about the fraudulent use of artificial intelligence to generate advertisements in which supposed well-known personalities recommend investing in unregulated platforms.

Citizen collaboration is essential. Any attempt at fraud can be reported anonymously and confidentially through the channels enabled on the official websites www.policia.es and www.guardiacivil.es.