International
authorities have dismantled a sophisticated fraud operation that stole more
than €3 million from over 100 victims through a fabricated online investment
scheme. Further investigation revealed the organization’s connections to
broader criminal activities involving human trafficking and drug operations,
with financial movements exceeding $21 million.
Spanish-German Probe Halts
$21 Million Underground “Mafia Crypto Bank”
The
multi-country operation, spearheaded by German prosecutors with significant
Spanish police involvement, culminated in coordinated searches across Albania,
Cyprus, and Israel, with one suspect arrested in Cyprus pending potential
extradition to Germany.
The
criminal network operated through two distinct branches: an Arab-origin group
responsible for receiving money worldwide and a Chinese-origin network that
facilitated cash delivery in Spain, receiving compensation through
cryptocurrency transactions.
This
structure enabled the organization to operate as an underground banking system
using the hawala method, which allows money transfers outside the conventional
banking system. One media outlet described the operations as a “mafia crypto
bank.”
In Spain
alone, authorities conducted 13 searches and arrested 17 members of the
organization. The operation yielded substantial assets: €205,000 in cash, more
than €183,000 in cryptocurrency, 18 vehicles valued at over €207,000, and
numerous encrypted electronic devices. Authorities also froze 10 properties
worth more than €2.5 million, luxury handbags valued at €230,000, and high-end
cigars worth over €622,000.
You may also like: European Authorities Arrest 5 in €89M Online Investment Fraud Case
Europol Coordinates
Takedown of Cross-Border Financial Crime Syndicate
The
investigation into the investment fraud began after a German married couple
reported being victimized by the scheme. Perpetrators posed as financial
brokers, initially encouraging victims to make small deposits before
systematically manipulating them into transferring substantially larger
amounts, showing fake profit charts to create the illusion of successful
investments.
Spanish
authorities indicated that over a three-month period, they documented 32
operations worth more than €5.5 million. However, through one of the
organization’s financial routing addresses used solely to receive and transfer
funds, investigators tracked over $21 million in transactions between June 2022
and September 2024.
The January
operation in Spain involved more than 250 officers coordinated through a
command center in Almería, where the investigating court could monitor all
searches in real-time. Of the 17 people arrested in Spain, 15 have been
remanded to prison on suspicion of money laundering and membership in a
criminal organization.
Two-Year Investigation
The broader
international effort involved coordination between law enforcement agencies
from Germany, Cyprus, Albania, the United Kingdom, and Israel, with Europol
providing operational support and Eurojust facilitating cross-border legal
cooperation.
The operation comes amid growing concerns from Europol about the role of cryptocurrencies in facilitating criminal activities. In its latest Internet Organised Crime Threat Assessment report, the agency highlighted how digital assets and artificial intelligence are increasingly being leveraged by criminal networks.
“Cybercriminals are keen to leverage Artificial Intelligence, which is already becoming a common component in their toolbox,” noted Catherine De Bolle, Europol’s Executive Director.
Officials
indicated that the investigation remains active, with further actions expected
as authorities continue to trace the network’s operations and potentially
recover additional assets.
International
authorities have dismantled a sophisticated fraud operation that stole more
than €3 million from over 100 victims through a fabricated online investment
scheme. Further investigation revealed the organization’s connections to
broader criminal activities involving human trafficking and drug operations,
with financial movements exceeding $21 million.
Spanish-German Probe Halts
$21 Million Underground “Mafia Crypto Bank”
The
multi-country operation, spearheaded by German prosecutors with significant
Spanish police involvement, culminated in coordinated searches across Albania,
Cyprus, and Israel, with one suspect arrested in Cyprus pending potential
extradition to Germany.
The
criminal network operated through two distinct branches: an Arab-origin group
responsible for receiving money worldwide and a Chinese-origin network that
facilitated cash delivery in Spain, receiving compensation through
cryptocurrency transactions.
This
structure enabled the organization to operate as an underground banking system
using the hawala method, which allows money transfers outside the conventional
banking system. One media outlet described the operations as a “mafia crypto
bank.”
In Spain
alone, authorities conducted 13 searches and arrested 17 members of the
organization. The operation yielded substantial assets: €205,000 in cash, more
than €183,000 in cryptocurrency, 18 vehicles valued at over €207,000, and
numerous encrypted electronic devices. Authorities also froze 10 properties
worth more than €2.5 million, luxury handbags valued at €230,000, and high-end
cigars worth over €622,000.
You may also like: European Authorities Arrest 5 in €89M Online Investment Fraud Case
Europol Coordinates
Takedown of Cross-Border Financial Crime Syndicate
The
investigation into the investment fraud began after a German married couple
reported being victimized by the scheme. Perpetrators posed as financial
brokers, initially encouraging victims to make small deposits before
systematically manipulating them into transferring substantially larger
amounts, showing fake profit charts to create the illusion of successful
investments.
Spanish
authorities indicated that over a three-month period, they documented 32
operations worth more than €5.5 million. However, through one of the
organization’s financial routing addresses used solely to receive and transfer
funds, investigators tracked over $21 million in transactions between June 2022
and September 2024.
The January
operation in Spain involved more than 250 officers coordinated through a
command center in Almería, where the investigating court could monitor all
searches in real-time. Of the 17 people arrested in Spain, 15 have been
remanded to prison on suspicion of money laundering and membership in a
criminal organization.
Two-Year Investigation
The broader
international effort involved coordination between law enforcement agencies
from Germany, Cyprus, Albania, the United Kingdom, and Israel, with Europol
providing operational support and Eurojust facilitating cross-border legal
cooperation.
The operation comes amid growing concerns from Europol about the role of cryptocurrencies in facilitating criminal activities. In its latest Internet Organised Crime Threat Assessment report, the agency highlighted how digital assets and artificial intelligence are increasingly being leveraged by criminal networks.
“Cybercriminals are keen to leverage Artificial Intelligence, which is already becoming a common component in their toolbox,” noted Catherine De Bolle, Europol’s Executive Director.
Officials
indicated that the investigation remains active, with further actions expected
as authorities continue to trace the network’s operations and potentially
recover additional assets.
This post is originally published on FINANCEMAGNATES.
