- Europol has dismantled a $700 million money laundering network
- The raids in Cyprus, Germany and Spain seized assets worth $1.7 million and arrested nine people
- Fraudsters have used deceptive platforms, push techniques and fake celebrity ads to lure thousands of victims.
Europol and various national law enforcement agencies recently abolished a cryptocurrency and a money laundering network worth more than €700 million. The network spanned several countries and included fake exchanges, fake customer service centers and fake affiliate marketing infrastructure.
The operation led to the seizure of more than $1 million in assets and the arrest of nine suspects.
“What began as an investigation into a single fraudulent cryptocurrency platform gradually evolved into a complex, large-scale operation that uncovered a massive fraud and money laundering network,” Europol said.
Second phase: affiliate marketing
In a statement earlier this week, police said the operation was split into two parts. Initially, coordinated police raids were carried out in Cyprus, Germany and Spain.
During these searches, police seized approximately $930,000 in bank accounts, approximately $500,000 in cryptocurrency, and approximately $350,000 in cash. They also seized digital devices and “advanced watches” and arrested nine people suspected of laundering stolen cryptocurrencies through fake trading and investment platforms.
Fraudsters reportedly develop fake cryptocurrency investment platforms, lure “thousands of victims” with sophisticated ads, and then repeatedly contact them through criminal call centers to pressure them to invest even more.
In the second phase, the business focused on the affiliate marketing infrastructure that supported online fraud. “Coordinated action has been taken against companies and suspects behind fraudulent advertising campaigns on social media platforms,” the statement said.
This is the type of advertising that promises high returns with a low investment and little or no risk. In many cases, they are deepfake videos of celebrities, politicians and tech gurus such as Donald Trump, Elon Musk or Michael Saylor. According to Europol, the information of potential investors obtained in this way is crucial to the functioning of the crypto-fraud industry.