Crypto Scammers Target Portuguese Investors: Two Victims Lose $312,000

Crypto scammers have targeted Portuguese investors, leaving two individuals from Cantanhede, in Portugal’s Coimbra District, defrauded of over $312,000.

Police reports suggest that an increasing number of people in Portugal are falling victim to these crypto fraudsters.

The victims were lured into the scam with promises of quick profits through “staking” coins on a crypto platform. 

One of the victims sent approximately $213,000 worth of Bitcoin (BTC) to a wallet they believed belonged to a legitimate crypto firm.

They were told that by storing their BTC on this platform, they could expect to make over $800,000.

The second victim sent a total of around $94,000 to the same fraudulent firm over the course of a month, drawn in by similar promises of substantial returns.

However, what appeared to be a legitimate investment opportunity quickly showed up to be a sophisticated scam.

Unfolding of the Scam: Fees and Frozen Coins

The victims began to suspect foul play when they were informed that they needed to pay an additional 3% of their stakes in fees to withdraw their tokens. This unexpected demand raised red flags.

As their suspicions grew, they received another blow when they were told that their coins had been “frozen.” The scammers claimed that the victims could only recover their frozen assets by paying thousands of dollars in “unlocking fees.”

Realizing they had fallen victim to a well-structured scam, the two individuals took the matter to the police, filing an official complaint against the fraudsters.

Rising Tide of Crypto Scams in Portugal

Portuguese law enforcement agencies have noted a surge in crypto-related scams, signaling an alarming trend in a country that was once considered a haven for crypto investors, largely due to the absence of tax on crypto trading profits until recently.

The Cybercrime Office in Portugal reported that incidents of cryptocurrency scams have more than doubled over the past two years.

This year alone, the office received 94 reports of crypto-related scams, a significant increase from the 38 reports filed in 2021.

Victims of these scams have reported substantial financial losses on various platforms. In many cases, by the time victims file complaints, the fraudulent platforms have disappeared from the internet, leaving no trace or contact information that could aid investigators in tracking them down.

Earlier this year, Portuguese prosecutors raised concerns about the rapid rise in cybercrime, including crypto scams, in the country. In response to these threats, the government introduced plans to impose a 28% tax on crypto-related capital gains in 2022.

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