Spanish Authorities Dismantle €19M Crypto Scam Using AI Deepfakes

Spanish authorities have successfully dismantled a complex crypto investment scam that defrauded over 200 victims, resulting in losses exceeding €19 million. The operation, which spanned two years, culminated in the arrest of six individuals across Spain. The scam utilized artificial intelligence to create fake celebrity endorsements, luring unsuspecting investors into what appeared to be a high-return crypto venture.

The investigation was initiated after a man from Granada reported losing €624,000 in a suspected crypto investment fraud. This led authorities to uncover a broader scheme where AI-generated videos of well-known public figures were used to convince victims to invest. The perpetrators further deceived victims by claiming that additional payments were necessary to unlock their original investments, thereby perpetuating the fraud.

The alleged leader of the criminal operation was apprehended while attempting to flee to Dubai. The suspects, aged between 34 and 57, are now facing charges of fraud, money laundering, and falsifying documents. Police have not yet confirmed whether any of the stolen funds have been recovered, and the investigation remains ongoing.

This case underscores a growing trend in crypto-related scams, where AI-generated deepfake videos and hijacked celebrity identities are increasingly used to promote fraudulent investments. Similar scams have been on the rise, with criminals exploiting public trust in recognizable figures to push meme coins or pump-and-dump schemes. Just this week, Guns N’ Roses guitarist Slash announced his departure from social media platform X after his account was compromised and used to promote a fake crypto scheme.

Last month, the widely followed crypto news outlet Watcher.Guru confirmed that its official X account was hacked after a fake post about a potential deal between Ripple and SWIFT spread across its social media channels, potentially affecting interest in XRP. The incident came amid a broader trend of crypto-focused social media hacks, many of which are used to pump newly launched meme coins. In February, Dior’s Instagram account was hijacked to promote a fake Solana-based token, which briefly reached a $280,000 market cap before plummeting 90%.

Last week, Kaito AI, an artificial intelligence-driven platform providing crypto market analysis, and its founder, Yu Hu, were also targeted in a social media hack on X. Hackers took control of the account and falsely claimed that Kaito AI’s wallets had been compromised, warning users that their funds were at risk. In February 2025, losses in the crypto ecosystem increased by 20x month-over-month compared with January 2025, according to the latest report by major blockchain security platform Immunefi. In January, registered losses stood at $73,915,700. Just a month later, this figure jumped to $1,528,342,400. The latter was the result of nine hacks. Additionally, the February number is an 18x increase from the same time a year prior. In February 2024, registered losses were $81,603,400.