Europol busts $815M-strong fraud network

European authorities have dismantled a massive crypto fraud and money laundering network, leading to the arrest of nine individuals. The network is estimated to have laundered over €700 million ($815 million).

The takedown directly impacts a crypto fraud syndicate that operated numerous fake crypto platforms and scammed thousands of people, Europol announced. According to authorities, the scammers advertised online, promising high returns and later pressured victims into making further payments by showing inflated returns.

“Once victims had transferred their cryptocurrency, the funds were stolen and laundered across various blockchains and cryptocurrency exchanges,” Europol said.

Europol busts massive crypto fraud network — Europol busts major crypto fraud and money laundering network. Image by Europol.

The investigation, which spanned at least eight countries, uncovered a massive fraud organization that encompassed several schemes, involving multiple platforms and sophisticated financial infrastructure spanning all of Europe.

The first phase of the action resulted in the arrest of nine individuals associated with the fraud network and confiscation of over $1.8 million in cash, crypto, and online accounts. Meanwhile, the second phase targeted the marketing infrastructure, which supported the fraud ecosystem.

“Coordinated actions were taken against the companies and suspects behind fraudulent advertising campaigns on social media platforms. In recent years, deceptive advertisements impersonating renowned media outlets, celebrities, and politicians – often using deepfake videos – have posed a significant global challenge,” Europol explained.

Law enforcement in Belgium, Bulgaria, Germany, and Israel carried out numerous searches, targeting companies that had previously offered affiliate marketing services. The investigation revealed that hundreds of millions of dollars were laundered through crypto exchanges, exploiting digital anonymity.