Spanish police have arrested six people linked to a massive cryptocurrency investment scam that used AI-generated deepfake videos featuring celebrities to trick victims into investing.
The scam defrauded around €19 million (about $20.9 million) from at least 208 victims across the globe.
The two-year investigation, code-named “COINBLACK – WENDMINE,” began after one victim filed a complaint. Police made arrests in Granada and Alicante, targeting individuals aged 34 to 57. During the raids, they seized €100,000 in cash, along with phones, computers, hard drives, firearms, and documents.
According to the police, the scammers set up fake companies to launder the stolen money. The group’s leader reportedly operated under more than 50 different aliases to stay hidden.
How the Scam Worked
The operation had multiple stages:
- It started with scammers posing as romantic interests or financial advisors to gain victims’ trust.
- Then, they used AI algorithms to target people with deepfake ads showing famous public figures promoting fake crypto investment platforms.
- Victims were shown fake profits to encourage more investment.
- Eventually, the scammers claimed the accounts were “blocked” and asked for large payments to unlock funds.
- In the final phase, the scammers pretended to be Europol agents or UK lawyers, saying the money was recovered, but victims had to pay fake “taxes” to get it back.
Police urge the public to be cautious of guaranteed returns, pressure tactics, and unexpected fees. They also warn not to trust video ads featuring celebrities without verifying the source, as AI deepfakes can now easily fake endorsements.
