Investors File Class Action Lawsuit Before the National Court of Spain Over an Alleged $298M Crypto Scam – News Bitcoin News
A group of Spaniards filed the first class action lawsuit related to crypto in the Spanish National Court for alleged million dollar fraud. The lawsuit is against a person accused of defrauding over 300 small crypto investors across Spain.
The stolen money could go as high as $ 3.58 billion
According to El País, the class action lawsuit alleges that a person named Javier Biosca Rodríguez allegedly defrauded more than 250 million euros ($ 298 million) in cryptocurrencies from investors.
The profile of victims is mixed, starting with domestic workers, retirees, the unemployed, even notaries, a judge, attorneys, tax inspectors and small business owners trying to recover from the coronavirus-induced economic crisis.
While it is not the first class action lawsuit filed in the Spanish national court, it is the first of its kind involving a crypto-related case, according to the local media outlet.
The attorney representing the victims is Emilia Zaballos, who clarified that the class action lawsuit filed on March 17, 2021 was not disclosed to the public until the deadline for filing contracts and other documents provided by small investors, is General completed. “
In addition, Zaballos, who is also president of the Association of People Affected by Cryptocurrency Investors (AAIC), says the number of victims “keeps increasing every day”.
In particular, the lawsuit states that the damage amounts to around 250 million euros (298 million US dollars). However, the lawyer fears the amount could exceed the € 3 billion ($ 3.58 billion) mark.
Alleged Ponzi program collapsed in November 2020
According to court documents, Biosca has developed a system based on offering its customers weekly returns on their crypto investments between 20 and 25%. Mainly he focused on acquiring Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) with the money raised.
In fact, customers began to get the profits from their investments first. Due to the trust that Biosca gained, the initially small customer base spread the word and attracted even more investors to the program.
However, Biosca reduced the promised returns to 10% or even 8% per week from January 2020.
He told his clients that he owned a brokerage firm called Algorithms Group, which was not part of Spain’s National Securities Markets Commission (CNMV). Later in November 2020, Biosca stopped paying its customers.
Zaballos says the lawsuit is being extended to Biosca’s wife and older son, accusing them of fraud and other crimes such as “embezzlement, receipt and money laundering, illegal association, crimes against the treasury, bribery, corporate crimes, concealment and forgery in public Document. “
What do you think of this suspected millionaire crypto scam case in Spain? Let us know in the comments below.
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