Five individuals have been arrested by London’s Metropolitan Police in connection with a suspected cryptocurrency scam.
According to a statement published on October 16, the suspects set up professional-looking websites to trick users into thinking they were investing in digital currencies.
These sites used false endorsements and marketing to appear trustworthy.
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The arrests were made on October 1 by the economic crime team. The suspects were taken into custody on suspicion of conspiracy to commit fraud.
Detectives estimated that the total amount lost by victims could be more than $1.3 million (about £1 million).
The scam is believed to have been operated from within London, using a setup known as a “boiler room”, where suspects made follow-up calls to pressure people into handing over more funds.
Police also stated that some of the fraudulent websites had changed domain names over time.
Detective Sergeant Stephen Bourne, who is part of the investigation, said that fraud of this kind can have serious effects on individuals. He encouraged the public to stay cautious and avoid using unfamiliar online trading sites.
The police are still gathering information and expect to learn more as the case develops.
Thai police recently arrested a Portuguese national accused of orchestrating large-scale cryptocurrency and credit card scams worth approximately $580 million. How did the case unfold? Read the full story.
