Another court action against a Spanish cryptocurrency company

Cryptocurrencies and bitcoin prices collapse dramatically. Credit: Pixabay

ANOTHER court action against a Spanish cryptocurrency company which started paying significant dividends and then stopped.

The Bank of Spain has been warning for some time about the risk of investing in cryptocurrencies and on November 10, a group of people led by Association of People Affected by Investments by Cryptocurrencies (AAIC) started another court action.

It claims that a company known as Mind Capital based in Madrid and controlled by the former producer and roulette expert Gonzalo Garcia-Pelayo has effectively committed alleged crimes of fraud and misappropriation.

According to Mind Capital it created a system which could accurately forecast movement in cryptocurrency and for several months paid out relatively high returns on investments but eventually advised clients that it could not return their original investments.

Then only offered to return the deposits in hard currency rather than bitcoins which investors had been made to pay over and which had increased in value dramatically.

This is the second time that a Spanish cryptocurrency investment company has been accused by investors of fraud, with the first, allegedly unable to repay some €210 million to its many clients.

It appears clear that whilst there are some large potential profits to be made by buying and selling Bitcoins and other similar currencies, there is a significant danger in putting money in an until recently mainly uncontrolled investment vehicle.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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