European authorities have arrested nine suspects in a multinational operation targeting a cryptocurrency investment fraud network that stole at least €600 million from victims. The late October sweep involved agencies from several countries and resulted in the seizure of cash, cryptocurrency, and luxury items. Victims were lured through deceptive online tactics but could not recover their funds.
In a coordinated effort announced on Tuesday, law enforcement across Europe dismantled a scam network that operated dozens of fake cryptocurrency investment platforms. These sites mimicked legitimate websites, promising high returns to attract investors, but instead absconded with the funds and laundered them using blockchain technology, according to Eurojust, the European Union Agency for Criminal Justice Cooperation.
The operation, conducted in late October, led to arrests in Cyprus, Spain, and Germany, with assistance from French and Spanish authorities. The Paris Prosecutor’s Office revealed that French investigating judges issued arrest warrants for six of the individuals involved. France’s JUNALCO agency, focused on fighting organized crime, had referred victim complaints to other agencies in 2023.
Suspects recruited victims through various methods, including social media advertising, cold calling, fake news articles, and testimonials from supposed celebrities or successful investors. Once victims transferred cryptocurrency to the platforms, they were unable to retrieve their money. Authorities estimate the network defrauded hundreds of people of at least €600 million, equivalent to about $690 million.
During the raids, officers seized €1.5 million in cash and cryptocurrency, along with luxury watches valued at €100,000. This action follows a similar Eurojust operation in late September that targeted a different network responsible for at least €100 million in scams.
Europol and Eurojust coordinated the global sweep, highlighting ongoing efforts to combat cryptocurrency-related fraud in Europe.
