Law enforcement authorities from multiple countries have dismantled a sophisticated cryptocurrency investment fraud scheme estimated to have stolen approximately €460 million ($542 million).
The operation, spearheaded by Europol and Spain’s Guardia Civil with support from agencies in the US, France, and Estonia, resulted in the arrest of five suspects during raids in Spain’s Canary Islands and Madrid.
Investigators found the criminal network defrauded over 5,000 investors. Illicit funds were amassed through various methods including withdrawals, traditional bank transfers, and cryptocurrency transactions.
As part of the crackdown, authorities have seized over $26 million worth of digital assets directly linked to the fraudulent activities.
This case aligns with a broader international effort to combat crypto-related crime. It follows actions like the US Department of Justice’s seizure of $225 million in assets connected to ‘pig butchering’ scams.
Enhanced Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols are increasingly becoming standard industry practices globally. These measures aim to improve transparency and accountability within cryptocurrency markets to prevent such large-scale frauds.