- Europol dismantled $700 million cryptocurrency laundering ring
- Raids in Cyprus, Germany and Spain seized $1.7 million in assets and arrested nine
- Scammers used fraudulent platforms, pressure tactics, and fake celebrity ads to lure thousands of victims.
Europol and several national law enforcement agencies recently dismantled a cryptocurrency and money laundering network valued at more than 700 million. The network spread to multiple countries and encompassed fake exchange platforms, fake customer service centers, and fake affiliate marketing infrastructure.
The bust resulted in more than $1 million in seized assets and the arrest of nine suspects.
“What began as an investigation into a single fraudulent cryptocurrency platform gradually developed into a complex and far-reaching operation, revealing a vast network of deception and money laundering,” Europol said.
Second phase: affiliate marketing
In a press release shared earlier this week, the law enforcement agency explained that the operation was divided into two parts. In the first part, coordinated police raids were carried out in Cyprus, Germany and Spain.
In these raids, police seized around $930,000 in bank accounts, around $500,000 in cryptocurrency, and around $350,000 in cash. They also confiscated digital devices, “high-value watches” and arrested nine people suspected of laundering the stolen cryptocurrencies through fake trading and investment platforms.
Criminals would develop fake cryptocurrency investment platforms, attract “thousands of victims” with sophisticated advertising, and then repeatedly contact them through criminal call centers to pressure them to invest even more.
In the second phase, the operation focused on the affiliate marketing infrastructure that supported the online scam. “Coordinated action was taken against the companies and suspects behind fraudulent advertising campaigns on social media platforms,” the announcement reads.
This is the type of advertising that promises high returns with low investments, with zero or no risk. In many cases, they include deepfake videos of celebrities, politicians and technology gurus such as Donald Trump, Elon Musk or Michael Saylor. Europol says that only the data of potential investors obtained in this way is vital for the functioning of the cryptocurrency industry.
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