Crypto Operation Using Fake Investment Platforms Dismantled in Spain

Spain’s Guardia Civil, alongside Europol and several other law enforcement agencies from around the world, have arrested five people accused of laundering hundreds of millions of euros obtained through cryptocurrency investment fraud.

This criminal network allegedly has over 5,000 victims worldwide, and it's been around for a few years. The money obtained from crypto fraud doesn't simply make its way into the legal world; there's an entire criminal enterprise specialized in laundering these funds.

A sophisticated transnational scheme

The criminal ring, which operated from Madrid and Latvia, was actually a fraud campaign structured and disguised as a legitimate investment platform. The "organization" lured the victims with online advertisements and fake websites into believing they could earn large profits by investing in cryptocurrencies.

Once the criminals made contact, they manipulated fake trading platforms that were designed to simulate profits and encouraged victims to invest ever larger sums. The platforms were entirely controlled by the fraudsters, and the displayed profits were not real. Ultimately, victims were unable to recover their funds, which had already been funneled into the group's complex laundering system.

The law enforcement operation, which took place on June 11, included:

• Eight arrests (five in Spain and three in Latvia)
• 16 house searches (10 in Spain and six in Latvia)
• Computer equipment and communication devices seized
• Various bank accounts frozen
• Property assets and luxury vehicles confiscated

"Online fraud is an epidemic affecting EU citizens, businesses and public institutions alike. The scale, variety, sophistication and reach of online fraud schemes is unprecedented. Europol expects online fraud to outpace other types of serious and organised crime as it is being accelerated by AI, aiding social engineering and access to data," said the authorities in the press release.

Investigators say the entire criminal organization has been using a corporate and banking network based in Hong Kong, utilizing payment gateways and user accounts in the names of different individuals and across various exchanges, likely in a concerted effort to remain out of the reach of the authorities.