Europe cracks down on €600 million crypto scam, nine arrested

In a major international crackdown, European investigators arrested nine suspects accused of running fake cryptocurrency investment platforms that defrauded victims across several countries, laundering over €600 million through sophisticated blockchain-based money-laundering schemes

European law enforcement agencies have arrested nine persons accused of operating a large-scale cryptocurrency fraud and money-laundering network that defrauded victims of more than €600 million ($689 million). The operation, coordinated by Eurojust, took place between October 27 and 29 across Cyprus, Spain, and Germany. Authorities seized €800,000 in bank accounts, €415,000 in cryptocurrencies, and €300,000 in cash during the raids.

According to Eurojust, the suspects created dozens of fake cryptocurrency investment platforms that mimicked legitimate trading websites and promised unusually high returns. Victims were targeted through social media ads, cold calls, and fabricated online testimonials featuring fake endorsements from celebrities and successful investors. Once funds were transferred, victims were unable to recover their money as the fraudsters quickly laundered the proceeds through complex blockchain transactions.

Part of a wider crackdown on crypto scams

This latest operation is part of Europe’s ongoing efforts to combat cryptocurrency-related fraud. Last month, authorities arrested five suspects tied to another crypto scam that stole over €100 million from victims since 2018. In June, Spanish police detained five more individuals accused of laundering €460 million through fake crypto investments, defrauding over 5,000 people worldwide.

European officials have warned that cryptocurrency investment scams are rapidly expanding, exploiting the digital asset boom and limited regulatory oversight. Meanwhile, the U.S. Federal Trade Commission reported that Americans lost $12.5 billion to fraud in 2024, with investment scams accounting for nearly half of those losses.

Authorities have urged investors to remain cautious and verify the authenticity of any cryptocurrency platform before committing funds.