European authorities have dismantled a major cryptocurrency fraud ring that defrauded over 100 victims of at least €100 million (approximately $118 million) across 23 countries, Eurojust announced in a coordinated operation involving multiple EU member states. The investigation, led by Eurojust with support from Europol, involved law enforcement authorities from Spain, Portugal, Italy, Bulgaria, Romania, Lithuania, and others, culminating in the arrest of five suspects, including the alleged mastermind behind the scam.
Overview of the Fraud Scheme
The fraudulent cryptocurrency investment scheme had been operational since at least 2018. The perpetrators offered victims the promise of high returns on investments through professionally designed online platforms that appeared legitimate. Investors, mainly from Germany, France, Italy, Spain, and other EU countries, deposited funds into these platforms, believing in substantial profits via cryptocurrency investments.
However, much of the money invested was redirected to bank accounts in Lithuania controlled by the fraudsters. As victims attempted to withdraw their funds, they were asked to pay additional fees, following which the websites would disappear, leaving investors with massive losses, sometimes losing most or all of their investments.
Coordinated Law Enforcement Action
The takedown happened through a joint operation coordinated by Eurojust on an “action day,” where authorities simultaneously raided five locations across Spain, Portugal, Italy, Romania, and Bulgaria. The operation involved freezing bank accounts and other financial assets linked to the scheme.
The criminal investigation team included prosecutors’ offices, courts, anti-corruption bodies, financial investigation units, and law enforcement agencies from the participating countries. Eurojust facilitated the exchange of information, coordinated European arrest warrants, investigation orders, and asset freezing measures to maximize the impact of the crackdown. Europol supported the operation since fall 2020 by providing operational and analytical assistance, including deploying a cryptocurrency expert to Spanish and Portuguese authorities for crypto asset seizures.
Modus Operandi and Money Laundering
The mastermind and other suspects organized the scam by attracting investors with promises of significant returns on various cryptocurrencies. The fraudsters created sophisticated websites designed to look professional and trustworthy.
However, instead of investing the funds, a significant portion was diverted into bank accounts in Lithuania to launder the illegally obtained proceeds. The operation used multiple payment gateways, user accounts, and corporate structures in different countries to obscure the money trail. When victims sought to retrieve their funds, they encountered demands for further payments. Eventually, the fraudulent platforms would go offline, making recovery impossible.
Extent and Impact of the Crime
This extensive fraud spanned at least 23 countries, with victims either residing in these countries or the regions being used to channel the stolen funds. Losses amounted to over €100 million, impacting more than 100 individual victims directly. This is one of the largest cryptocurrency fraud cases recently uncovered in Europe.
In related operations this year, Spanish police arrested another group involved in laundering $540 million from gambling and investment scams linked to cryptocurrency. Another major case in Spain involved an $11.8 million investment fraud, highlighting a growing trend of complex, multinational crypto fraud rings targeting European investors.
Statements from Eurojust and Authorities
Eurojust emphasized that this operation demonstrated effective collaboration among EU countries in tackling cross-border financial crime, particularly in the fast-evolving cryptocurrency domain. The agency called the scheme “an elaborate investment fraud using cryptocurrencies as bait,” noting the significant coordination required to dismantle it.
Eurojust also highlighted the role of its coordination in facilitating arrest warrants, investigations, and asset freezes across several jurisdictions, underscoring the importance of judicial cooperation in fighting large-scale crypto fraud.
Authorities warned investors to exercise caution with online cryptocurrency investment offers promising high returns and emphasized the risks of unregulated platforms.
Wider Context of Cryptocurrency Scams in Europe
This case is part of a broader trend where cryptocurrency-related fraud and scams have increased significantly. The U.S. Federal Trade Commission reported record-high losses to investment scams in 2024, totaling around $5.7 billion from fraudulent schemes, with crypto scams being a major contributor.
European law enforcement agencies are increasingly focusing on cyber-enabled financial crimes and have ramped up international cooperation and investigations, as cryptocurrencies present new challenges for tracking and prosecuting illicit activities.
- A major European cryptocurrency fraud ring defrauded over 100 victims of at least €100 million across 23 countries.
- The scam operated from at least 2018, targeting investors with promises of high returns via professional-looking online platforms.
- Five suspects were arrested during coordinated raids in Spain, Portugal, Italy, Romania, and Bulgaria, including the alleged mastermind.
- Illicit proceeds were laundered through bank accounts in Lithuania.
- Eurojust coordinated the multi-nation operation with support from Europol and multiple national agencies.
- The case underscores growing regulatory and law enforcement efforts to combat complex crypto investment frauds across Europe.
This operation marks a significant victory in addressing the risks posed by fraudulent schemes in the crypto space, with a clear message to fraudsters and investors alike about the consequences and dangers involved.