Spanish police have just arrested five people linked to an "investment cryptocurrency scam" that laundered nearly 540 million USD (460 million Euros) in illicit money from over 5,000 victims. This global investigation began in 2023, involving law enforcement from Spain, Estonia, France, and the USA.
The case developments and the operation of the network
Three people were arrested after searches in the Canary Islands, and two others were arrested in Madrid. Europol stated that a cryptocurrency expert was dispatched to Spain on the day of the raid, contributing to the success of the operation.
The alleged leaders of the operation used associates around the world to raise funds through cash withdrawals, as well as transfers from bank accounts and cryptocurrency wallets. A "network of companies and banks" is said to have been established in Hong Kong, using accounts in other people's names to "receive, store, and transfer criminal money."
The investigation into this network is still ongoing. Europol describes online fraud as "an epidemic affecting citizens, businesses, and public organizations in the EU."
The level of cryptocurrency fraud is "unprecedented"
Officials are concerned that the "scale, diversity, sophistication, and scope" of such fraud schemes have reached "unprecedented" levels. #Europol predicts that online fraud will surpass other serious and organized crimes, as it is being driven by AI, social engineering support, and data accessibility.
A recent report from the EU law enforcement agency shows that cryptocurrency now plays a broader role "in more traditional areas of crime" such as drug trafficking and migrant smuggling. The authors warn that digital assets and DeFi platforms act as a "digital cloak" to hide money laundering activities.
The report also adds: "Cryptocurrency remains the most important investment fraud product in the EU. Although scammers primarily target individuals, companies occasionally become targets." #Spain