Cryptocurrency Crime Surges in Spain's Basque Region: Fraud, Kidnapping, and Money Laundering Cases Skyrocket, Police Urgently Upgrade Tracking Systems

Gate News reports that on March 17, Spanish media COPE reported that the northern Basque region of Spain is facing a rapid increase in cryptocurrency-related crimes. Local police Ertzaintza revealed that there are currently 541 ongoing cases involving cryptocurrencies, including scams, money laundering, and illegal transactions.

The police pointed out that as digital assets like Bitcoin become more popular in Spain, the number of criminals using blockchain’s anonymity to commit illegal activities has significantly increased. Data shows that by the end of 2024, approximately 11 million people in Spain have held or are holding crypto assets. This trend is also believed to be linked to the rise in crime.

Among the disclosed cases are 13 cryptocurrency scams and 2 investigations into money laundering using crypto assets. Law enforcement is also tracking activities such as tax evasion through cryptocurrencies and illegal goods purchases. Due to the technical complexity of these cases, Ertzaintza has established cross-departmental teams and introduced blockchain monitoring tools to improve tracking of fund flows.

Notably, social media platform Instagram has become a high-frequency channel for scams. Police said scammers often impersonate trusted individuals or friends to lure victims into fake crypto investment schemes or even persuade them to download malicious apps, enabling remote control of devices and theft of wallet and bank account funds.

Additionally, in December 2024, local police, in cooperation with national law enforcement agencies, successfully dismantled a criminal network involved in crypto money laundering. The group, based in Catalonia, used voice phishing and drug trafficking to obtain illegal funds, and employed Basque region members to withdraw and transfer the money.

The European Police Organization (Europol) has previously warned that crypto-related crimes are becoming more complex and professional. Facing these escalating risks, Spanish regulators emphasize that all crypto service platforms operating in the country must complete registration and filing to enhance market transparency and protect users.

Against the backdrop of increasing crypto asset penetration, balancing innovation and security has become a key challenge for regulators and law enforcement agencies across Europe.