A vast crypto-investment fraud network that stole and laundered more than €700 million ($815 million) has been dismantled following coordinated raids across Europe.
The criminal group operated a multitude of fake crypto-trading platforms that promised high returns through slick marketing campaigns, Europol announced on Thursday.
Victims, lured by “sophisticated” ads, were directed to call centers where operators used social engineering tactics to obtain further deposits. Once the funds were transferred, they were siphoned off and laundered through a maze of blockchains and exchanges.
The first wave of action, on October 27, saw coordinated raids in Cyprus, Germany and Spain, resulting in nine arrests and the seizure of bank funds, crypto assets, cash, electronics and luxury goods. A second operation, on November 25 and 26, targeted the affiliate marketing infrastructure that powered the system, disrupting the companies behind fraudulent advertising campaigns and data harvesting operations used to identify potential victims.
Investigators say the scheme evolved far beyond a single fraudulent site, operating multiple fraudulent platforms supported by sophisticated financial and advertising infrastructure. With arrests made and key servers seized, authorities will continue to trace assets linked to the network across Europe and beyond.
The operation highlights how widespread crypto investment scams have become – and how dependent their operation is on cross-border laundering, data exploitation and deceptive marketing.
Europol’s bankruptcy announcement comes just days after law enforcement revealed the takedown of a cryptocurrency mixing service that allegedly laundered more than $1.51 billion in bitcoin. .
