Europol, in collaboration with law enforcement agencies from Spain, France, Estonia, and the United States, has helped disrupt a major international cryptocurrency investment fraud ring responsible for laundering approximately $540 million (€460 million) from over 5,000 victims worldwide. The operation was led by Spanish authorities, with arrests made in Madrid and the Canary Islands, resulting in the apprehension of five individuals—three on the Canary Islands and two in Madrid.
The criminal network operated by posing as a legitimate Hong Kong-based firm offering Forex and crypto investment services. They used a sophisticated system of corporate and banking infrastructure in Hong Kong, along with payment gateways and user accounts registered under various identities across multiple cryptocurrency exchanges to receive, store, and transfer illicit funds. The scheme involved a global network of accomplices who facilitated cash withdrawals, bank transfers, and cryptocurrency transactions to obscure the money trail.
Europol began supporting the investigation in 2023, providing coordination, analysis, and operational support, including deploying a cryptocurrency expert to Spain on the day of the arrests to assist with tracing stolen funds. The investigation remains ongoing as authorities continue to uncover new evidence.
This case highlights the growing threat of online investment fraud, which Europol describes as an “epidemic” and expects to surpass other forms of organized crime due to its scale, sophistication, and the increasing use of artificial intelligence to enhance social engineering and data access.
