European Agencies Busted €600 Million Crypto Fraud Network in Worldwide Sweep
European Agencies Busted €600 Million Crypto Fraud Network in Worldwide Sweep
A concerted law enforcement investigation that targeted a cryptocurrency money laundering network that deceived victims of €600 million (~$688 million) resulted in the arrest of nine individuals.
The activity occurred in Cyprus, Spain, and Germany between October 27 and 29, according to a statement issued by Eurojust today. The suspects were detained on suspicion of participating in money laundering from fraudulent activities.
Authorities searched the people’s houses and seized €800,000 ($918,000) in bank accounts, €415,000 ($476,000) in cryptocurrency, and €300,000 ($344,000) in cash.
Agencies from France, Belgium, Cyprus, Germany, and Spain joined Eurojust in this “synchronized” endeavor.
“The members of the network created dozens of fake cryptocurrency investment platforms that looked like legitimate websites and promised high returns,” Eurojust stated. “They recruited their victims using a variety of methods such as social media advertising, cold calling, fake news articles, and fake testimonials from celebrities or successful investors.”
After the victims put their money in the fraudulent platforms, blockchain was used to launder the cryptocurrency assets, earning them around €600 million in illegal profits.
According to Eurojust, the raids that took place last week were the result of an investigation into the money laundering and scam network that was started when victims complained about not being able to get their investments back.
Concurrently, the Paris Prosecutor’s Office stated in a LinkedIn post that the investigation began in 2023 and that “several hundred victims” in France and throughout Europe were tricked into exporting their assets through phony cryptocurrency platforms that offered alluring profits.
The revelation coincides with Europol’s revelation that the illegal use of cryptocurrencies and blockchain technology is becoming more organized, intelligent, and professional, and that a similar reaction is needed to fight the “borderless nature” of the danger.
“Law enforcement, private sector partners, and academia are quickly improving their capacity to combat the threats presented by advanced crypto-related crimes and money laundering,” the FBI stated. “Advanced tools have decreased reliance on manual tracing, while a host of successful cross-border operations show the power of collaboration.”
About The Author:
Yogesh Naager is a content marketer who specializes in the cybersecurity and B2B space. Besides writing for the News4Hackers blogs, he also writes for brands including Craw Security, Bytecode Security, and NASSCOM.
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