During an operation supported by Europol and law enforcement from the USA, France, and Estonia, the criminal network was accused of defrauding over 5,000 victims across multiple countries.
On June 25, Spanish authorities arrested five people in connection with a massive cryptocurrency investment fraud amounting to $539 million (460 million euros).
According to a Europol press release, the organization began its operations in 2023, providing intelligence, financial analysis, and coordination between agencies. On the day of the arrests, Europol sent a cryptocurrency specialist to Spain to assist with on-site investigations.
Notably, three suspects were arrested in the Canary Islands and two in Madrid, where simultaneous searches were also conducted.
Raids in Spain uncovered a global network of scammers.
The suspects allegedly managed a global network of sales representatives who promoted fraudulent cryptocurrency investment opportunities. These agents collected funds from unsuspecting victims through cash deposits, bank transfers, and crypto wallets.
Investigators believe the group created a complex financial structure based in Hong Kong. This network used various payment gateways and numerous accounts on cryptocurrency exchanges, often registered under fictitious names, to receive and transfer stolen funds.
Authorities confirmed that the criminal group could move large sums of money across borders, exploiting vulnerabilities in cryptocurrency platforms and providing anonymity.
Moreover, the investigation is ongoing, and authorities are currently analyzing digital evidence and tracking the movement of funds across various jurisdictions. Officials do not rule out additional arrests as the investigation continues.
Meanwhile, this investment scam in Spain is not an isolated case. In April, Spanish police arrested six people involved in a cryptocurrency fraud totaling 19 million euros ($21.5 million). The scammers used AI-generated fake celebrity videos to lure more than 200 victims into fake investment schemes.
The investigation began after a resident of Granada lost 624,000 euros ($700,000) and led to the discovery of a wider network that convinced victims to make additional payments under false pretenses. Interestingly, the alleged leader was caught attempting to flee to Dubai.
Online fraud is becoming an increasingly serious threat.
Meanwhile, Europol identified online fraud as one of the fastest-growing threats to EU internal security. In its serious and organized crime threat assessment for 2025 (SOCTA), Europol warned that internet fraud, particularly involving cryptocurrencies, is becoming increasingly widespread and sophisticated.
The report also notes the growing use of artificial intelligence to enhance fraudulent schemes. These technologies are employed to conduct attacks using social engineering and gain unauthorized access to confidential financial data.
Earlier this month, Europol dismantled Archetyp Market, a large darknet platform linked to illegal transactions worth more than 250 million euros ($287 million), mainly involving drugs like fentanyl and MDMA. The alleged German site administrator was arrested in Spain, as well as in Germany and Sweden.
Despite the arrest of the platform's servers in the Netherlands, TRM Labs experts warn that the disruption may be temporary. TRM cited that darknet operators are increasingly turning to encrypted peer-to-peer channels like Telegram and Signal, complicating law enforcement in the future.
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