European authorities dismantle crypto fraud network that laundered over EUR 700m

European law enforcement agencies continue to dismantle cryptocurrency fraud networks.

Summary

• Police conducted coordinated raids in Cyprus, Germany and Spain on Oct. 27 following requests from France and Belgium.
• Authorities seized EUR 800,000 from bank accounts, EUR 415,000 in cryptocurrency, EUR 300,000 in cash.
• Police teams in Belgium, Bulgaria, Germany and Israel searched offices connected to companies that allegedly supported fraudulent advertisements.

One operation in particular allegedly stole and laundered more than EUR 700 million.

The news comes as Europol dismantled a major European bitcoin mixing service in a coordinated operation with German and Swiss law enforcement authorities.

It began with a single fraudulent trading website

The operation concluded years of investigative work by police teams, analysts and cyber specialists who tracked the organization across multiple countries and digital platforms, authorities said.

The coordinated effort resulted in the shutdown of fraudulent investment websites, seizure of assets and disruption of support operations that sustained the scheme.

Investigators subsequently determined the operation extended to numerous fake cryptocurrency platforms designed to appear legitimate. The websites promised high returns to potential victims and featured professional design elements, dashboards and charts, authorities reported.

Victims typically accessed the sites through online advertisements, some of which allegedly mimicked established media outlets, public figures or political leaders, according to the investigation. Some advertisements reportedly used deepfake video clips.

After clicking advertisements, potential victims’ information was collected and transferred to call centers, where staff repeatedly contacted them to encourage additional investments, officials said. The trading screens displayed false gains to victims, according to authorities.

Funds sent by victims were transferred across multiple blockchains, exchanges and digital wallets to obscure the money trail, investigators reported. The operation included fake advertisements, call centers, cryptocurrency channels and a network of shell companies, according to the investigation.

Cross-border crackdown

Police conducted coordinated raids in Cyprus, Germany and Spain on Oct. 27 following requests from France and Belgium, where numerous complaints had been filed, Europol stated. Nine suspects were arrested during the operation.

Authorities seized EUR 800,000 from bank accounts, EUR 415,000 in cryptocurrency, EUR 300,000 in cash, along with digital devices and other assets, according to officials. The seized devices contained logs, account information and wallet data that provided additional investigative leads, authorities said. Bank records assisted investigators in tracking fund movements through various branches of the organization.

A second phase of operations occurred on Nov. 25 and 26, targeting the marketing infrastructure of the fraud network, according to Europol. Police teams in Belgium, Bulgaria, Germany and Israel searched offices connected to companies that allegedly supported the fraudulent advertisements.

Several firms had provided services that promoted false claims on social media platforms, some using automated systems to distribute misleading information, authorities reported. Other companies collected user data that was subsequently provided to call center staff, according to the investigation. The actions eliminated tools used to identify and target potential victims, officials stated.

The network’s laundering operations moved more than EUR 700 million through multiple exchanges, according to investigators. Many transfers involved small amounts distributed across numerous wallets to complicate tracking efforts, authorities said. Analysts used data from seized devices and exchange records to connect transfers to the organization, officials reported.