A massive cryptocurrency investment fraud network that stole and laundered more than €700 million ($815 million) has been dismantled following a coordinated crackdown across Europe.
Europol announced on Thursday that the criminal gang operated a large number of fake cryptocurrency trading platforms and promised high returns through clever marketing campaigns.
Victims attracted by “sophisticated” ads were directed to call centers where operators used social engineering tactics to coax larger deposits. Once funds are moved, they are siphoned off and laundered through the maze of blockchains and exchanges.
The first wave of operations on October 27 saw coordinated raids in Cyprus, Germany and Spain, resulting in the arrest of nine people and the seizure of bank funds, crypto assets, cash, electronics and luxury goods. A second scan, conducted on November 25 and 26, targeted the affiliate marketing infrastructure that powered the scheme, disrupting the companies behind the fraudulent advertising campaigns and data collection operations used to identify potential victims.
Investigators said the scheme grew far beyond a single scam website and operated multiple fraud platforms supported by a complex financial and advertising infrastructure. With the arrests made and key servers seized, authorities will continue to track assets associated with the network in Europe and beyond.
The operation highlights how cryptocurrency investment scams are growing in scale and how dependent they are on cross-border money laundering, data exploitation and deceptive marketing.
Europol’s announcement of the bust comes just days after the law enforcement agency revealed the takedown of a cryptocurrency mixing service suspected of laundering more than $1.51 billion in Bitcoin. .
