COINBLACK – WENDMINE: Inside the €19 Million Deepfake Driven Crypto Scam

Spanish police have broken up a global cryptocurrency fraud operation known as COINBLACK – WENDMINE, which used artificial intelligence and deepfake videos to trick victims into investing in fake platforms. The scam stole €19 million from 208 people around the world.

The investigation began two years ago after one victim came forward. Police eventually arrested six suspects between the ages of 34 and 57 in the Spanish regions of Granada and Alicante.

Officers also seized €100,000 in cash, along with mobile phones, computers, hard drives, firearms, and documents. These items helped uncover how the criminals ran the scheme.

The group used AI tools to create deepfake videos that showed well-known national figures endorsing fake investment platforms. These videos made the offers seem more trustworthy and encouraged people to invest.

The scammers targeted victims by using algorithms to select people who matched certain personal or financial traits. They then approached these individuals by pretending to be financial advisors or even forming fake romantic relationships.

In the early stages, victims saw high returns on their investments. However, the platforms were fake, and the figures were invented to build false confidence. Eventually, the scammers told victims that their funds had been blocked. To get their money back, they were asked to make additional payments.

In the final stage of the scam, the criminals posed as Europol agents or UK lawyers. They claimed the victims' funds had been recovered, but said taxes or legal fees had to be paid before the money could be released.

Police also discovered that the group had set up many shell companies to move and hide the stolen money. The ringleader used over 50 fake identities to stay hidden.

Authorities are warning the public to stay alert. They advise people to be suspicious of any investment offering guaranteed returns. It is important to research platforms carefully and confirm their legitimacy before sending money.

Other warning signs include pressure to invest quickly, being unable to withdraw funds, and being asked to pay extra fees or taxes to access money. Officials also warn against trusting videos of celebrities or public figures that promote financial services, as these can now be easily faked using AI.

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