Europe Dismantles €700 Million Crypto Fraud Network
European authorities have successfully dismantled a large‑scale cryptocurrency fraud and money‑laundering network, resulting in the arrest of nine individuals and the seizure of over €700 million in laundered funds. The operation, conducted in two phases, involved multiple European agencies collaborating to bring down the criminal organization.
How the Network Operated
The criminal network ran numerous fake cryptocurrency investment platforms, enticing thousands of victims with advertisements promising high returns. Perpetrators used call centers and social‑engineering tactics to pressure victims into investing on these fraudulent trading platforms.
The network was initially uncovered during an investigation into a single fraudulent cryptocurrency platform, but its reach was found to span across Europe and beyond.
Phase 1: Raids on October 27
Police raids were conducted in Cyprus, Germany, and Spain at the request of French and Belgian authorities. These raids led to the seizure of bank accounts, cash, cryptocurrencies, digital devices, and high‑value watches.
Phase 2: Targeting Affiliate Marketing – November 25‑26
The second phase targeted the affiliate‑marketing setup that supports these online scams. The scams used fake advertisements featuring photos and deep‑fake videos of celebrities and politicians to lure victims.
International Cooperation
Agencies from Belgium, Bulgaria, Germany, and Israel conducted searches against companies and suspects involved in fraudulent advertising campaigns on social‑media platforms. The majority of the fraud operations were based in Cyprus, Germany, and Spain, while companies in Belgium, Bulgaria, Germany, and Israel ran the fake ads.
Europol’s Ongoing Efforts
Europol has stated that investigative authorities will continue to track the criminal organization’s assets in the countries where it operates and resides.
Related Case: Crypto‑Mixer Shutdown
In a related case, European authorities recently shut down a crypto‑mixing service, “Cryptomixer,” allegedly used by cybercriminals to launder over €1.3 billion in Bitcoin. Authorities confiscated three servers, the platform’s domain, more than €25 million in BTC, and over 12 terabytes of operational data.
Impact and Outlook
The successful takedown of this extensive crypto fraud network highlights the ongoing efforts of European authorities to combat financial crime and protect consumers from fraudulent schemes.
