Global Cryptocurrency Fraud Ring Busted: Law Enforcement Arrests Mastermind, Freezes Millions
European law enforcement authorities, with the support of Eurojust and Europol, have carried out a major operation against a vast cryptocurrency investment fraud scheme that had been operating for several years across 23 countries.
The initiative was launched by authorities in Spain and Portugal. Joint actions led to the arrest of five individuals, including the alleged mastermind, as well as searches conducted in Spain, Portugal, Italy, Romania, and Bulgaria. In addition, bank accounts and other assets linked to the criminal network were frozen.
The scheme operated through professionally designed online platforms that lured victims with promises of high returns on cryptocurrency investments. In reality, much of the money was funneled into Lithuanian accounts for laundering. When victims attempted to recover their funds, they were told to pay additional fees—only for the websites to vanish shortly thereafter.
As a result, investors lost most, and in many cases all, of their savings. The group’s actions caused damages exceeding €100 million, with more than a hundred victims identified in Germany, France, Italy, and Spain alone.
The investigation has been ongoing since 2018. To coordinate efforts, Spain and Lithuania established a joint investigative team. Eurojust facilitated coordination meetings, the preparation of European arrest and search warrants, and the harmonization of asset-freezing procedures. On the day of the operation, Eurojust also coordinated the actions of national authorities. Europol, involved since 2020, provided both analytical and operational support, deployed a cryptocurrency specialist to Portugal, and assisted in seizing digital assets.
Multiple judicial and prosecutorial bodies took part in the effort. In Spain, the National Court and the Anti-Corruption Prosecutor’s Office worked alongside police. In Portugal, operations were led by the Central Bureau of Criminal Investigation and the Judicial Police.
In Italy, the Turin Prosecutor’s Office and the Financial Guard participated, while in Bulgaria, prosecutors from Sofia and Plovdiv were engaged. In Lithuania, the General Prosecutor’s Office and the Financial Crime Investigation Service were involved. In Romania, the Prosecutor’s Office of the High Court of Cassation and Justice, together with the Directorate for Investigating Organized Crime and police forces, played a pivotal role.
This multilayered cooperation underscored how transnational cryptocurrency fraud schemes have become, and how challenging it is to combat criminals whose operations span dozens of countries. Investigators stressed that international collaboration was key to tracing financial flows, identifying crucial accounts, and ultimately uncovering the ringleaders.
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