Eurojust conducted a large-scale operation to uncover an international cryptocurrency fraud scheme, resulting in the arrest of five suspects, including the alleged leader of the criminal group. The operation was initiated by law enforcement agencies from Spain and Portugal, with representatives from several other European countries joining the investigation.
This is reported by Finway
Scale of the Fraud and Law Enforcement Actions
Investigators found that the perpetrators operated through professionally designed online platforms, offering investors high returns on investments in various cryptocurrencies. As a result of this scheme, over one hundred individuals in Germany, France, Italy, and Spain were defrauded. The total amount of losses exceeded 100 million euros.
“During the joint action day, five locations were searched in Spain and Portugal, as well as in Italy, Romania, and Bulgaria, where bank accounts and other financial assets were also frozen. The alleged main organizer is suspected of large-scale fraud and money laundering obtained through criminal means,” the statement said.
Fraud Scheme and Geography of the Crime
According to Eurojust, the criminal scheme had been operating since at least 2018 and spanned 23 countries. The main suspect promised clients significant returns on investments, but most of the funds were transferred to bank accounts in Lithuania for further laundering. When victims attempted to retrieve their money, they were forced to pay additional fees, after which the fraudsters disappeared, and the websites were blocked. As a result, investors lost most or even all of their invested money.
It is worth noting that similar cases of cryptocurrency fraud are also being reported in Ukraine. In particular, a resident of Mykolaiv Oblast was recently suspected of conducting a similar scam exceeding 14 million hryvnias.