Massive cryptocurrency fraud operation taken down by European law enforcement agencies

European authorities have shut down a long-running cryptocurrency investment fraud operation involving more than 100 victims and over €100 million in damages.

The fraud scheme has been running since at least 2018 and involves 23 different countries worldwide.

The main suspect promised victims high returns on investments in various cryptocurrencies via professionally designed online trading platforms. Large portions of these investments were diverted to bank accounts, primarily in Lithuania, to launder the revenues.

When victims tried to cash in on their investments and winnings, they were asked to pay additional fees. Once they paid the added compensation, the website that was used to commit the fraud disappeared.

At the request of Spain, Eurojust set up a joint investigation team (JIT) between the Spanish and Lithuanian authorities to assist with the exchange of information on the fraud scheme.

In addition, Eurojust coordinated a major operation across Europe to put an end to the investment fraud operation.

Lastly, the agency helped to acquire European arrest warrants and investigation orders.

During action day, which took place last week, law enforcement authorities from Spain, Portugal, Bulgaria, Italy, and Romania searched five places, seizing bank accounts and financial assets. A total of five persons were arrested, including the alleged main perpetrator.

The ringleader of the operation is suspected of large-scale fraud and money laundering.

Earlier this year, Eurojust established a joint investigation with German and Romanian law enforcement agencies, successfully dismantling a group of scammers that defrauded customers of over €400,000.