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

In brief

An EU police operation coordinated by Europol has arrested nine people for alleged involvement in a crypto money laundering scheme that stole $689 million.
Authorities in Cyprus, Spain, Germany, France and Belgium have so far frozen $919,000 in bank accounts, $476,760 in crypto and $344,652 in cash.
Europol has recently warned that the criminal use of crypto is becoming more sophisticated, while blockchain intelligence firms also report that losses from crypto investment scams has been growing.

Police in Cyprus, Spain and Germany have arrested nine individuals in connection with a crypto 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 29, with authorities in France and Belgium also participating.

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

They promised high returns on investments, but when victims transferred crypto, the network laundered funds using multiple blockchain platforms.

In total, the network was able to launder the aforementioned €600 million, 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 as a result of complaints from victims, with Eurojust initially establishing 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

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

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

Speaking to Decrypt, Eurojust’s Press Team confirmed that it has seen “an increase in cases reported to Eurojust,” although it admits that it doesn’t have a comprehensive overview of total cases, since agencies within EU member states have no obligation to report individual cases.

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

“According to TRM Labs’ data, more than $53 billion in scams and fraud have been tracked across the industry since 2023—and that figure is almost certainly underreported,” he said.

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

Crypto investment scams

Redbord affirmed that many investment scams are becoming more sophisticated, making use of online social engineering or even romance 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 guide victims to fake trading platforms or investment sites that appear professional, often complete with dashboards that show fake profits.”

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

The best defense against such dangers, Redbord affirmed, is healthy skepticism, particularly if you’re approached directly and offered large returns by someone you’ve never met before.

“No legitimate investment opportunity—in crypto or anywhere else—can guarantee profits,” he said. “Be wary 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.”