Digital Currency Pyramid Scheme Operators Jailed in Spain

hands-jail
27 October 2015

A Spanish court has remanded in custody the alleged operators of a pyramid scheme that used a fake digital currency called ‘unete’.

Temporary imprisonment pre-trial is typically set as a precaution to avoid defendants from fleeing or destroying necessary evidence during a case.

The court documents, dated 21st October, state that Jose Manuel Ramirez Marco and Maria del Pilar Otero Sanchez are both suspected of fraud, participating in a criminal organisation and money laundering.

Spanish police first arrested 20 individuals in connection to the pyramid scheme in July, estimating that 50,000 victims had been defrauded worldwide.

Launched in 2013, the Unetenet scheme, which promised investors as much as $1,300 in weekly returns, gained traction among investors through its promotional events and sales pitches.

According to documents seen by CoinDesk, victims have been defrauded of over $31m (€28m).