Spanish Police Break €19M Crypto Scam Fueled by AI and Celebrity Deepfakes
Spanish police have dismantled a sophisticated cryptocurrency fraud operation worth €19 million ($21.5 million), arresting six suspects behind a massive scam that leveraged artificial intelligence and celebrity deepfakes. The group used AI-generated videos to create fake endorsements from well-known public figures, duping over 200 victims into investing in a bogus crypto scheme.
The investigation kicked off after a man in Granada reported losing €624,000 ($700,000) in what he believed was a legitimate crypto opportunity. That tip led authorities to a far-reaching fraud network that used AI-driven tools to fabricate realistic video endorsements and lure victims with promises of high returns. Once invested, victims were pressured into paying additional fees to “recover” their initial funds, trapping them deeper in the con.
Over a two-year operation, the Spanish National Police uncovered the extent of the scam, which spanned multiple provinces. The alleged ringleader was caught while attempting to flee to Dubai. Those arrested, aged 34 to 57, now face serious charges including fraud, money laundering, and document forgery. Police have yet to confirm if any of the stolen funds have been recovered, and the case remains active.
This crypto bust comes amid a sharp rise in online scams using AI-generated deepfakes of celebrities to promote fake crypto projects. Social media platforms are increasingly being targeted, with hackers hijacking influencer and brand accounts to push fraudulent investments. Recent incidents include hacks of Slash’s and Dior’s social accounts, which were used to promote scam tokens and false crypto news.
Blockchain security firm Immunefi reports a dramatic spike in crypto-related losses, noting that February 2025 alone saw $1.53 billion in thefts—more than 20 times the previous month. These trends underscore the growing threat of AI in financial crime.
Spanish authorities are urging the public to stay vigilant and skeptical of crypto schemes promising guaranteed returns, especially those featuring unexpected celebrity endorsements. The use of AI and deepfake technology is making these scams harder to spot, and global law enforcement is racing to keep pace with the evolving tactics of cybercriminals.
