- Europol dismantled a $700M crypto laundering network
- Raids in Cyprus, Germany, and Spain seized $1.7M in assets and arrested nine
- Scammers used fraudulent platforms, pressure tactics, and deepfake celebrity ads to lure thousands of victims
Europol and multiple national law enforcement agencies recently took down a cryptocurrency and money laundering network worth more than 700 million. The network extended to multiple countries, and spanned fake exchange platforms, fake customer support centers, and fake affiliate marketing infrastructure.
The takedown resulted in more than a million dollars in seized assets, and the arrest of nine suspects.
“What began as an investigation into a single fraudulent cryptocurrency platform gradually unfolded into a complex, far-reaching operation, revealing a vast network of deceit and money laundering,” Europol said.
Second phase – affiliate marketing
In a press release shared earlier this week, the police agency explained that the operation was split into two parts. In the first part, coordinated police raids were executed in Cyprus, Germany, and Spain.
In these raids, the police seized around $930,000 in bank accounts, around $500,000 in cryptocurrencies, and around $350,000 in cash. They also seized digital devices, “high-value watches”, and arrested nine people suspected of laundering the cryptos stolen through fake investment and trading platforms.
The crooks would develop fake crypto investment platforms, lure “thousands of victims” with sophisticated advertising, and then repeatedly contact them through criminal call centers to pressure them into investing even more.
In the second phase, the operation focused on affiliate marketing infrastructure that supported the online scam. “Coordinated actions were taken against the companies and suspects behind fraudulent advertising campaigns on social media platforms”, the announcement reads.
This is the kind of advertising that promises high returns on low investments, with zero to no risk. In many instances, they include deepfake videos of celebrities, politicians, and tech gurus such as Donald Trump, Elon Musk, or Michael Saylor. Europol says that just the data of potential investors obtained this way is vital to the functioning of the crypto-scam industry.
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