Authorities across Europe dismantled a massive cryptocurrency fraud and money laundering network, arresting nine suspects in a coordinated operation spanning Cyprus, Spain, and Germany. The network allegedly scammed hundreds of victims out of more than 600 million euros ($688.9 million), Eurojust, the European Union’s judicial cooperation hub, said Tuesday.
The suspects reportedly created dozens of fake crypto investment platforms that mimicked legitimate websites and promised high returns. Victims were recruited through social media ads, cold calls, fake news articles, and fabricated celebrity endorsements.
Once funds were transferred, victims were unable to recover their money. Investigators said the criminals laundered the illicit proceeds using blockchain technology.
“This network exploited both technology and trust to defraud investors across Europe,” said JUNALCO, France’s National Jurisdiction against Organized Crime. “The scale and sophistication of the scheme demonstrate the growing risk of fraudulent cryptocurrency operations.”
The arrests were accompanied by searches that seized 800,000 euros ($918,504) in bank accounts, 415,000 euros ($476,444) in cryptocurrencies, 300,000 euros ($344,417) in cash, and luxury watches valued at more than 100,000 euros ($114,805). Authorities said several properties linked to the network are still being evaluated.
French prosecutors said the suspects face charges including organized fraud, money laundering, providing unlicensed investment services, and participation in a criminal association. Violations under French law carry up to 10 years in prison and fines of up to 1 million euros ($1.15 million).
The investigation began in 2023 after French authorities received multiple complaints from victims of cryptocurrency scams. Eurojust said its role in facilitating cross-border judicial cooperation was crucial to the rapid dismantling of the network.
Authorities in Belgium, Cyprus, Germany, and Spain continue to gather evidence and investigate possible additional suspects, highlighting the increasingly transnational nature of cryptocurrency crimes.
The operation took place between October 27 and 30, with Eurojust helping to organize judges and prosecutors from France, Belgium, Cyprus, Germany, and Spain. French officials said joint investigation teams and real-time communication helped them synchronize actions across borders.
