Crypto Scam News: Lessons from the Santander Crypto Scam Case

When it comes to protecting your money, especially in the world of crypto, it turns out banks don’t always have your back. A recent court ruling involving Santander Bank and a Massachusetts resident who lost $751,000 in a crypto scam has brought this reality into sharp focus. Let’s break down what happened, what the court said, and what it means for the rest of us.

The Story: $751,000 Lost to a Crypto Scam

Between December 2021 and January 2022, a man named Garcia made two debit card purchases and seven wire transfers from his Santander accounts to the Metropolitan Commercial Bank of New York. These funds were then used to buy cryptocurrency through Crypto.com and a shady trading platform called CoinEgg.

Later, Garcia found out CoinEgg was a scam. By then, the money was long gone. Hoping to recover his losses, he took Santander to court, claiming the bank should’ve caught and blocked the suspicious transactions.

Court Ruling: No Legal Duty to Stop You from Making Mistakes

Garcia sued Santander for breach of contract, negligent misrepresentation, and violating Massachusetts consumer protection law. His main argument? The bank should’ve flagged the high-risk transactions and intervened.

But the court didn’t agree.

According to the ruling, Santander’s customer agreement doesn’t require the bank to stop or investigate authorized transactions, even if they’re tied to fraud. In other words, if you authorize a payment, the bank isn’t legally responsible for what happens next. The judges also pointed out that Massachusetts law doesn’t force banks to monitor or block all suspicious activity.

Marketing Promises Aren’t Legal Promises

Garcia also pointed to language on Santander’s website that suggested the bank would “contact customers” about questionable activity. However, the court ruled that this was marketing language and not a binding promise. In the eyes of the law, those words didn’t create a duty for the bank to act.

What really worked against Garcia was that he had personally authorized every transfer. He didn’t report any concerns to the bank until it was too late.

Crypto Scams Are Exploding in 2025

This ruling couldn’t have come at a more relevant time. Crypto scams are exploding in 2025. According to DappRadar, scam losses jumped 6,499% in the first quarter of the year compared to the same period in 2024.

A staggering $6 billion has been lost so far in 2025 due to crypto rug pulls. A single event, the Mantra incident, is responsible for 92% of that total. As noted by blockchain analyst Sara Gherghelas, this makes it one of the biggest scams in recent years.

What You Can Learn from This Case

The message is clear: banks aren’t your financial guardians, especially when it comes to crypto. If you approve a transaction, the bank may not be required to protect you, even if fraud is involved.

So what can you do? Always double-check who you’re sending money to, be sceptical of too-good-to-be-true platforms, and don’t rely on your bank to stop a scam in progress. Crypto may offer big returns, but it comes with big risks, and it’s up to you to stay safe.