A recent joint operation led by Eurojust and Europol has resulted in the arrest of five individuals suspected of operating a major cryptocurrency investment fraud ring. This scam stole over €100 million ($118 million) from more than 100 victims across 23 countries. The operation, which began in September 2020, involved investigative teams from Spain, Portugal, Bulgaria, Italy, Lithuania, and Romania. The suspects allegedly promised victims high returns on cryptocurrency investments through professional-looking online platforms, but they instead directed a large portion of the funds into their own bank accounts in Lithuania.
The fraud, which had been active for several years, was designed to trick victims into believing their investments were legitimate. When victims tried to get their money back, they were told they had to pay additional fees. After these payments were made, the fraudulent websites would suddenly go offline, leaving investors with significant losses, in some cases, all of their money. The alleged main perpetrator is now facing charges for large-scale fraud and money laundering.
The joint action day involved searches at five locations across Spain, Portugal, Italy, Romania, and Bulgaria. During these searches, authorities froze bank accounts and other financial assets connected to the scheme. This coordinated effort highlights the growing collaboration among international law enforcement agencies to combat sophisticated online financial crimes. The success of this operation sends a clear message that these types of scams will not go unpunished.
This recent bust is part of a larger trend of law enforcement cracking down on cryptocurrency fraud. In June, Spanish police arrested five other suspects for allegedly defrauding over 5,000 victims in a separate scam, laundering over $540 million (€460 million). Just a month later, Spanish police dismantled another large-scale investment fraud operation that caused more than $11.8 million (€10 million) in damages.
These arrests underscore the significant threat posed by investment scams. A recent report from the U.S. Federal Trade Commission revealed that Americans lost a record $12.5 billion to fraud in 2024 alone, with investment scams accounting for the highest losses at around $5.7 billion. This trend emphasizes the need for continued vigilance and international cooperation to protect investors from these damaging schemes.
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