Europol has announced the dismantling of a large-scale cryptocurrency investment fraud network operating across Spain, France, Estonia, and the United States. The coordinated crackdown led to a series of arrests carried out in late June, targeting a group responsible for orchestrating a global scheme that defrauded thousands of victims.
The operation was led by the Spanish Guardia Civil, with support from Europol and law enforcement agencies in the United States, France, and Estonia. Authorities conducted five arrests, three of which took place in the Canary Islands and two in Madrid. The network had been under investigation since 2023 and was using complex financial systems to launder illicit profits from fraudulent crypto schemes.
Sophisticated Scam Network Uncovered
According to Europol, the criminal network used a global network of associates to collect and move funds through various channels including cash, traditional bank transfers, and cryptocurrency transactions. The scheme involved aggressive marketing tactics that included phone calls, emails, and direct persuasion. These methods were used to convince individuals to invest in fake crypto opportunities that promised high returns.
The operation was far more organized than typical scams in the cryptocurrency space. Europol stated that over 5,000 victims worldwide were defrauded, and the total amount laundered by the network was estimated at EUR 460 million, or around $540 million. A Europol crypto specialist was deployed to Spain on the day of the arrests to assist in the ongoing investigation.
Use of Fake Platforms and AI Tactics
The fraud included the use of fake investment platforms designed to show false returns and growing balances. Victims were often unable to withdraw their funds and were instead prompted to deposit more money to access their supposed profits. Some schemes involved the use of AI tools, including deepfakes, to gain the trust of investors and enhance the believability of the scams.
The fraudsters also reportedly operated through financial gateways in Hong Kong and used multiple user accounts under false names. European law enforcement continues to caution against trusting investment offers that guarantee profits, especially those involving cryptocurrency or stablecoins.
Wider Pattern of Investment Fraud in Europe
It is the second major crypto-related investigation this year in Spain, after an April one. Europol has already addressed other types of similar scam that were not related to digital currency, such as fraudulent contracts in renewable energy. These schemes of investment are usually well planned with a fine selection of victims through extensive research of their background and this has resulted to the loss of significant sums of money in the region.
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