European investigative services rolled up an international network at the end of October that committed online investment fraud on a large scale through fake crypto platforms.
The joint actions took place in several countries, including Cyprus, Spain and Germany, and resulted in the arrest of nine suspects.
The coordination of the operation was with Eurojust in The Hague. Belgium has applied for immediate extradition for three of the arrested persons.
The investigation shows that the group managed to trick hundreds of victims with professional-looking websites that promised high returns. The platforms were completely fictional, but designed to resemble real trading sites. Through advertisements, phone calls, social media and carefully made fake testimonies, victims were persuaded to transfer money. Once they invested, the full amount disappeared into the network and reimbursement was impossible.
The proceeds were laundered through a series of complex constructions. The criminals used blockchain transactions to move large sums of cryptocurrency, often in small steps and across countless addresses. This method should disguise the origin and make detection time-consuming. Eventually, some of the money was converted to regular currency or invested in real estate projects, including in the Cypriot city of Limassol.
The actions secured significant assets. Investigation services seized more than one million euros from bank accounts, more than four tonnes of cryptocurrency, three tonnes of cash and thirty real estate whose value is still being determined. In addition, expensive watches and digital administrations were found, including various cryptowallets.
Previous studies in Belgium, France, Spain and Malta show that the same organisation has been active for years. Through Cypriot companies, illegally obtained money was injected into construction projects, after which the money as ‘legally’-looking incomes flowed back into the economy. The complex structure of companies and wallets was designed to evade supervision.
The Federal Judicial Police Limburg continues the investigation under the direction of an investigating judge. The suspects will later have to answer for, among other things, participation in a criminal organization, large-scale scams and money laundering.
