A significant pan-European crypto scam amounting to over €100 million ($118 million) has been dismantled, as confirmed by Eurojust. The fraudulent scheme preyed on investors through deceitful online platforms, diverting their funds into accounts located in Lithuania before vanishing once individuals attempted to make withdrawals. Eurojust’s announcement on September 22 highlights that the primary suspect is believed to be involved in extensive fraud and money laundering activities.
The scam had been operational since at least 2018, affecting numerous countries including Germany, France, Italy, Spain, and beyond. A coordinated crackdown resulted in the arrest of five individuals during simultaneous raids across Spain, Portugal, Italy, Romania, and Bulgaria. This operation was the result of collaboration between local prosecutors, anti-corruption units, Eurojust, and Europol. Moreover, assets connected to the scam, including bank accounts, were frozen across various jurisdictions to prevent further financial damage.
Europol became involved in the investigation in 2020, deploying a cryptocurrency expert to assist in seizing digital assets linked to the fraudulent activities. This operation has been described as the largest coordinated takedown of crypto fraud in EU history.
The surge in crypto fraud appears to be in line with market trends. Data from Glassnode indicates that Bitcoin wallet activity has increased by more than 20% year-over-year, consequently creating more opportunities for scammers. An alarming report from the Global Initiative Against Transnational Organized Crime identified the Western Balkans as a hub for laundering digital proceeds, while Russia’s central bank reported over 1,000 crypto pyramid schemes in just six months.
As of now, Europol estimates that investor losses from various fraud cases across Europe have exceeded €460 million since 2020. The implications of these scams extend beyond financial losses for individuals; they undermine retail trust in the cryptocurrency market. This, in turn, places pressure on regulators to strengthen existing frameworks to safeguard investors.
Furthermore, Europe’s proactive approach highlights a commitment to combatting such schemes rigorously, signifying that law enforcement is ready to take decisive action against crypto fraud instead of merely issuing warnings. Investors are advised to remain cautious of polished marketing and offers promising “guaranteed” returns, as the landscape continues to evolve amidst these challenges.
