14 Apr Investors File Class Action Lawsuit Before the National Court of Spain Over an Alleged $298M Crypto Scam
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A group of Spaniards have filed Spain’s first cryptocurrency class action lawsuit in an alleged multimillion-dollar scam. The case is against a person accused of defrauding more than 300 small cryptocurrency investors in Spain.
The stolen money could amount to $3.58 billion.
Per El País, the class action lawsuit alleges that a person named Javier Biosca Rodriguez defrauded investors of more than 250 million euros ($298 million) in cryptocurrencies.
The profile of those affected is mixed: They include domestic workers, pensioners, the unemployed and even notaries, judges, lawyers, tax inspectors and small business owners who were trying to recover from the economic crisis caused by the coronavirus.
While this is not the first class action lawsuit filed in Spain’s national court, it is the first of its kind regarding a cryptocurrency case, local media reported.
The lawyer representing the victims is Emilia Zaballos. She explained that although the class action was filed on March 17, 2021, it was not disclosed to the public by individual investors until after the deadline for filing contracts and other documents had passed.
Furthermore, Zaballos – who is also president of the Association of People Affected by Crypto-currency Investors (AAIC) – says the number of victims continues to grow every day.
Specifically, the lawsuit states that the damages amount to about 250 million euros ($298 million), but the lawyer fears that the amount could exceed the 3 billion euros ($3.58 billion) mark.
Assuming the Ponzi scheme collapses in November 2020
According to court documents, Biosca built a system based on offering its customers a weekly return on their crypto investments of between 20 and 25 percent. He mainly focused on buying Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) with the money raised.
Clients have begun to recoup their investment. Thanks to the confidence Biosca has gained, the small initial customer base has spread and attracted even more investors.
However, Biosca has reduced the promised yield to 10% or even 8% per week from January 2020.
He told his clients that he owns a brokerage firm called Algorithms Group, but this company is not subject to the Spanish National Securities and Exchange Commission (CNMV). Later, in November 2020, Bioska ceased payments to its customers.
Zaballos says the lawsuit involves Bioski’s wife and oldest son. He charged them with fraud and other offences such as embezzlement, receiving and laundering of money, unlawful associations, offences against the Treasury, corruption, corporate offences, concealment and falsification of a public document.
What do you think about this alleged crypto millionaire scam case in Spain? Let us know your comments in the section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
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