Europol Busts Global Crypto Fraud and Laundering Network

• Europol uncovered a web of fake crypto investment platforms that laundered more than $815 million.
• International enforcement authorities across Asia, Europe, and the U.S. have intensified their response to crack down on crypto-linked criminal networks.

Europol disclosed it took down a crypto fraud and money laundering network that moved more than €700 million, about $815.75 million, through fake investment platforms. The European Union law enforcement agency said the busts started as an investigation into a single fraudulent cryptocurrency platform.

Europol Uncovers Crypto Fraud 

Europol said it began the latest crypto fraud raid last month and concluded it earlier this week. This marked the culmination of years of investigation and the disruption of a criminal operation across Europe and beyond.

The initial investigations, according to Europol, uncovered a web of fake crypto investment platforms supported by aggressive call center operations. Callers used social engineering techniques to pressure victims into sending more funds. 

To maintain the illusion of high profits, the network displayed inflated returns on fabricated trading dashboards. 

Once victims move their cryptocurrencies, the network transfers the funds to multiple blockchains and exchanges to shield their origin.

As investigations continued, the scale of the fraud grew far beyond the original scheme. According to Europol, the investigation eventually encompassed numerous sites and a sophisticated financial infrastructure even beyond Europe.

At the request of French and Belgian authorities, police carried out the first phase of coordinated raids across Cyprus, Germany, and Spain on October 27. They arrested nine suspects on charges of laundering proceeds from the fraudulent platforms. 

Authorities seized €415,000 ($483,500) in cryptocurrencies, €800,000 ($932,000) in bank accounts, and €300,000 ($349,500) in cash. 

The seizures also include digital devices and high-value watches. These actions were supported by Europol and Eurojust, alongside national agencies from Spain, France, Germany, Belgium, Malta, and Cyprus.

Authorities Increase Surveillance in the Crypto Sector

The recent raid emphasizes the key role Europol and other international authorities play in protecting the crypto space.

As mentioned in our earlier post, German and Swiss authorities worked with Europol to shut down the crypto mixing service Cryptomixer. Together, they seized around €25 million in Bitcoin, three servers, the cryptomixer.io domain, and over 12 terabytes of data.

In another report, authorities arrested an operator of a €250 million Monero-based darknet drug market in Barcelona after a five-year run. Officials believe the individual ran the darknet platform with support from moderators, enabling the sale of drugs such as fentanyl, heroin, amphetamine, cocaine, and cannabis.

Furthermore, Israel recently seized 187 wallets allegedly tied to the IRGC with $1.5 billion in Tether (USDT) transactions. While authorities said these wallets once processed $1.5 billion in USDT transactions, only about $1.5 million remained in those wallets at the time of the seizure.

Previously, we noted that the global crypto industry continues to battle increasingly sophisticated scams, from industrial-scale pig butchering operations to AI-driven deepfake impersonations.