A criminal network related to cryptocurrency investment fraud has been arrested by Europol in coordination with agencies from many countries, processing over 5,000 victims and damages amounting to hundreds of millions USD.
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Europol coordinates to arrest the international cryptocurrency investment scam network.
A multinational network has laundered up to 460 million EUR, defrauding more than 5,000 victims globally.
Many fraud methods, including impersonation schemes and exploiting artificial intelligence (AI).
How did Europol dismantle the cryptocurrency scam network?
Europol, in coordination with law enforcement agencies in Spain, France, Estonia, and the United States, has arrested five members of the criminal network related to cryptocurrency investment fraud, while also conducting several searches in the Canary Islands and Madrid.
This activity has been detected and investigated since 2023 with the technical support of Europol's financial crime investigators, contributing to handling the large-scale fraud case.
To carry out the fraud, the network leaders used a globally distributed associate system to profit through cash withdrawals, bank transfers, and cryptocurrency transfers.
– Europol, official statement June 2024
What methods does the fraud network use?
Unlike traditional cryptocurrency scams, this network operates via phone, email, and direct media forms to convince investors to invest in falsely high-profit cryptocurrency projects.
Data from Europol shows that the money laundered in the case reached 460 million EUR (about 540 million USD), stealing assets from over 5,000 people worldwide.
The network also used bank accounts in Hong Kong in conjunction with cryptocurrency exchanges to transfer and launder money, increasing the complexity of the case.
Details of fraud schemes
Victims are often lured through the use of fake platforms that showcase continuously growing profits, attracting them with promises of high returns and absolute safety guarantees. When investors try to withdraw money or request profits, they are forced to send more money to be able to withdraw.
Criminals use both cryptocurrency, stablecoins, bank transfers, and even cash withdrawals to launder money, making tracing more difficult. This is a scam model that has morphed with the development of artificial intelligence and deepfake technology.
Why did Europe become a target for cryptocurrency scams?
Europe, with a relatively user-friendly legal environment for cryptocurrency users, is also where many scams occur due to the lack of risk awareness among some investors.
Europol's report indicates that many previous scams were related to various sectors, such as bogus renewable energy investments, aimed at deceiving users with contracts and unreasonable profits.
“Fraud schemes are becoming increasingly sophisticated, leveraging thorough research to target victims, even without directly mentioning cryptocurrency but still pulling in investments.”
– Executive Director of Europol, 2024
Comparing the fraud environment in Europe with other regions
Characteristics Europe United States Asia (Hong Kong) Legal regulations Quite strict, supports cross-border investigations Developed, many major cases handled Complex, many loopholes for money laundering Common fraud methods Multi-level investment scams, NFT, AI, false advertising Fake investments, Ponzi schemes related to cryptocurrency Money laundering through banks and cryptocurrency wallets Damage level Hundreds of millions EUR/year Hundreds of millions USD/year Uncertain, but there are many large cases
Frequently Asked Questions
How long did the fraud network operate before being detected? Europol and related agencies investigated since 2023, and arrests were made in mid-2024. What methods were used to launder money? Bank transfers, cash withdrawals, transferring cryptocurrency through many different accounts and exchanges. How can people avoid being scammed in cryptocurrency investments? Be wary of promises of remarkable profits, avoid transferring money through non-transparent channels, and consult experts. Does Europol provide On-chain data about scams? So far, Europol has not published detailed On-chain data about this case. What does this arrest mean for the cryptocurrency community in the EU? It contributes to creating a safer environment, protecting users from complex scams.
Source: https://tintucbitcoin.com/europol-triet-pha-lua-dao-tien-ao/
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