European law enforcement agencies have arrested nine people accused of running a massive cryptocurrency fraud scheme that stole more than €600 million, or about $689 million, from victims across several countries.
The suspects allegedly created fake crypto investment platforms that appeared legitimate and promised high returns to lure unsuspecting investors.
According to investigators, the scammers attracted victims through social media, phone calls, fake news articles, and fabricated celebrity endorsements. Once victims transferred their cryptocurrency to the fraudulent platforms, they were unable to recover their money. The stolen funds were then laundered using various blockchain tools, making the transactions appear legitimate.
The coordinated operation took place on October 27 and 29 in Cyprus, Spain, and Germany. It was organized by Eurojust, the European Union’s judicial cooperation agency, from its headquarters in The Hague. During the raids, authorities seized €800,000 from bank accounts, €415,000 in cryptocurrencies, and €300,000 in cash.
Eurojust said that the suspects were arrested at their homes and are accused of laundering money obtained through online investment fraud. The criminal group is believed to have built dozens of fake cryptocurrency trading websites designed to look professional and trustworthy, tricking victims into depositing large sums of money that were later stolen.
This is the latest in a growing list of large-scale cryptocurrency scams uncovered across Europe. Just last month, police in several European countries arrested five people involved in another fake investment network that had defrauded victims of more than €100 million ($118 million) since 2018.
In June, Spanish authorities detained five suspects accused of laundering $540 million (€460 million) from illegal crypto investment schemes that targeted more than 5,000 people worldwide. A month later, they dismantled another fraudulent operation responsible for stealing more than $11.8 million (€10 million) from investors.
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The rise in cryptocurrency-related crime mirrors global trends. The U.S. Federal Trade Commission reported earlier this year that Americans lost a record $12.5 billion to fraud in 2024, with investment scams being the most damaging, accounting for about $5.7 billion in losses.
