EU Arrests Nine in Connection with $689M Crypto Scam Network

The police in Cyprus, Spain and Germany have arrested nine individuals in connection with a cryptocurrency money laundering network that defrauded victims of $689 million (€600 million).

Coordinated by Eurojust, the EU agency for criminal justice cooperation, the operation made the arrests on October 27 and 29with authorities in France and Belgium also participating.

According to the agency, members of the network created “dozens” of fraudulent crypto investment websites and platforms, luring their victims via social media, cold calls, fake articles, and fake influencer ads.

They promised a high return on investments, but when the victims transferred crypto, the network laundered funds with many blockchain platforms.

In total, the network managed to launder the aforementioned 600 million euros, while Eurojust’s actions resulted in the seizure of $919,000 (€800,000) in bank accounts, $476,760 (€415,000) in crypto and $344,652 (€300,000) in cash.

Eurojust and EU police agencies became aware of the criminal network through complaints from victims, Eurojust initially set up a joint investigation involving French and Belgian police forces.

This investigation soon expanded to include prosecutors and agencies in Germany, Spain and Cyprus, who together with their French and Belgian partners began planning how to take down the network.

“Increasingly sophisticated” crypto criminals.

Its operation comes after Europol’s Burkhard Mühl, who heads the agency’s European Financial and Economic Crime Center, warned that the use of crypto for criminal purposes is “.becoming more and more sophisticated.”

It also comes as the cost of crypto-related scams and fraud has reached $12.4 billion in 2024, according to data from Chainalysiswhich represents an increase over the previous three years.

Speaking to Decryptthe Eurojust Press Team confirmed that it has seen “an increase in cases reported to Eurojust”, although it admits that it does not have a complete view of total cases, as agencies in EU member states are not obliged to report individual cases.

Other intelligence firms also attest that the problem has only gotten worse in recent months and years, with Ari Redbord, VP, Global Head of Policy and Government Affairs at TRM Labs, saying Decrypt that fraudulent investment schemes are one of the largest and fastest sources of illicit funds in the crypto sector.

“According to data from TRM Labs, more than $53 billion in scams and fraud have been tracked across the industry since 2023 – and this figure is almost certainly an understatement,” he said.

In fact, TRM Labs estimates that only between 15% and 20% of victims report their losses, implying that the true figure would be considerably higher.

Crypto investment scams

Redbord stated that many investment scams have become more sophisticated, making use of online social engineering or even romantic deceptions.

“Scammers build trust over days or even months through messaging apps, social media, or dating sites,” he said. “Once they’ve established rapport, they lead victims to fake trading platforms or investment sites that look professional, often complete with dashboards showing fake profits.”

And in general, any crypto-currencies sent to criminals in the process of their scam will be “quickly converted into stablecoins and laundered through a web of intermediaries,” such as over-the-counter brokers and unlicensed exchanges.

The best defense against such dangers, Redbord asserted, is healthy skepticism, especially if you are approached directly and offered great returns by someone you have never met before.

“No legitimate investment opportunity – in crypto or elsewhere – can guarantee profits,” he said. “Beware of unsolicited investment advice on social media or messaging apps, and never transfer funds to a personal wallet or third-party address controlled by someone you don’t know.”