Law enforcement agencies across Europe have successfully dismantled a sophisticated cryptocurrency investment fraud ring responsible for losses exceeding €100 million from more than 100 victims.1 The operation, which culminated in the arrest of five suspects, marks a significant victory in the ongoing battle against large-scale cyber-enabled financial crime. Coordinated by Eurojust and supported by Europol, the takedown involved investigative teams from Spain, Portugal, Bulgaria, Italy, Lithuania, and Romania, highlighting the critical need for international cooperation to combat cross-border criminal networks.1 This case is part of a broader wave of law enforcement actions in mid-2025 targeting crypto-related fraud and money laundering schemes that span the globe, from Africa to Asia.
The fraud ring had been operational since at least 2018, targeting investors across 23 countries with professionally designed online platforms that promised high returns on cryptocurrency investments.1 The main suspect orchestrated a scheme where victims’ funds were funneled to bank accounts in Lithuania instead of being invested. When investors attempted to withdraw their supposed profits, they were met with demands for additional fees, after which the fraudulent websites were abruptly shut down.1 The joint investigation, which began in September 2020, involved five property searches across Spain, Portugal, Italy, Romania, and Bulgaria, with authorities also freezing associated bank accounts and financial assets.1 The scale and duration of this operation underscore the persistence and adaptability of modern financial criminal enterprises.
A Global Pattern of Crypto Fraud Takedowns
The European operation is not an isolated incident but rather part of a coordinated international effort to disrupt crypto-based financial crime. Just three months prior, Spanish authorities, with support from Europol and law enforcement in Estonia, France, and the United States, arrested five members of a network that defrauded over 5,000 victims worldwide, laundering €460 million in illicit proceeds.2 This operation, codenamed Borrelli, revealed a complex criminal structure utilizing a corporate and banking framework based in Hong Kong, with payment gateways and accounts in various names to receive, store, and transfer criminal funds.2 Similarly, INTERPOL’s Africa-wide crackdown, Operation Serengeti 2.0 in August 2025, led to over 1,200 arrests and the seizure of nearly $100 million, including the shutdown of 25 illegal bitcoin mining centers in Angola and the dismantling of a large-scale online investment fraud in Zambia that affected 65,000 victims.3 These simultaneous actions demonstrate a heightened global focus on the threat posed by cryptocurrency-enabled crime.
The Mechanics of Modern Crypto Money Laundering
Parallel investigations reveal the sophisticated methods criminals employ to launder proceeds from such frauds. Italian law enforcement, for instance, recently uncovered a crypto-based underground bank in Prato, Italy, run by individuals from the local Chinese community.8 The investigation focused on Cheng Bangjie, a 45-year-old Chinese national, whose mobile phone contained two digital wallets that processed over 10.7 million USDT (over €9 million) in just three months. Over 90% of these funds were traced from online crypto exchanges to a financial platform in Cambodia previously flagged as high-risk by the U.S. Financial Crimes Enforcement Network (FinCEN).8 In another case, Thai Cyber Police arrested a South Korean national involved in a scheme that converted nearly $50 million in USDT from a call-center investment scam into physical gold bars, with each transaction involving at least 10 kg of gold.21 This hybrid method of converting digital assets into untraceable physical stores of value complicates investigations and highlights evolving criminal tactics.
The Central Role of Stablecoins in Illicit Finance
A common thread in these cases is the prominent use of stablecoins, particularly Tether (USDT). Analysis indicates that USDT has become a “shadow dollar” system, favored by criminals for its stability and ease of transfer outside traditional banking channels.32 The United Nations has flagged Tether as powering new money laundering networks, facilitating activities for Russian oligarchs evading sanctions, Southeast Asian scam compounds, and European criminal groups.32 The resilience of these networks is further illustrated by the case of the Huione Group, a Cambodian conglomerate accused by the U.S. Treasury of laundering over $4 billion for cybercriminals. When its USDT wallets were frozen, the group simply launched its own stablecoin, USDH, to continue operations.24 This “whack-a-mole” dynamic presents a significant challenge for global regulators and law enforcement.
Regulatory Responses and Future Implications
In response to the escalating threat, regulators worldwide are implementing stricter frameworks. Hong Kong’s Securities and Futures Commission has introduced a stringent new custody rulebook for Virtual Asset Trading Platforms, emphasizing cold wallet security and senior management accountability.27 In the United States, FinCEN issued a notice highlighting a 99% increase in 2024 in scams involving cryptocurrency kiosks, mandating strong Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols for operators.44 The U.S. GENIUS Act of 2025 aims to bring stablecoin issuers and operators under the Bank Secrecy Act framework, representing a significant step toward legitimizing these assets while tightening controls.32 These regulatory shifts, combined with the increasing use of blockchain forensics by law enforcement, signal a move from observation to active intervention in the crypto space.
The successful takedown of the €100 million fraud ring demonstrates that while the threats are evolving and sophisticated, international coordination can yield substantial results. The collaboration between agencies across six European nations, facilitated by Eurojust and Europol, serves as a model for future investigations. However, the persistence of these schemes, their operational scale, and the criminals’ ability to adapt their money laundering techniques indicate that sustained effort and continued investment in cross-border investigative capabilities are essential. The cases uncovered in 2025 show that crypto fraud is not a niche issue but a systemic challenge requiring a unified global response.
References
- “Police dismantles crypto fraud ring linked to €100 million in losses,” BleepingComputer.com, Sep. 23, 2025.
- “Crypto investment fraud ring dismantled in Spain after defrauding 5 000 victims worldwide,” Europol, Jun. 30, 2025.
- “African authorities dismantle massive cybercrime and fraud networks,” Interpol, Aug. 22, 2025.
- “How police can stop crypto scams with coordination,” Police1, Aug. 23, 2025.
- “Spain ‘Dismantled’ €460 Million Crypto Fraud Ring, Arrested 5,” Finance Magnates, Jun. 30, 2025.
- “Interpol Seizes $100M in Crypto Crime Crackdown Across Africa,” Bitbo.io, Aug. 24, 2025.
- “Crypto Weekly: fraud ring dismantled,” Reuters (Video), Jul. 3, 2025.
- P. Odorisio, “Italian Police Dismantle Crypto-Based Money Laundering Ring in Prato,” LinkedIn, Aug. 4, 2025.
- “Cryptocurrency fraud ring busted in Spain after laundering …,” Reuters, Jun. 30, 2025.
- “Spain dismantles major crypto fraud ring that laundered €460 million,” Investing.com, Jun. 30, 2025.
- S. Baker, Reshare and summary of the Prato case, LinkedIn, Aug. 4, 2025.
- P. Odorisio, Original detailed post on the Prato case, LinkedIn, Aug. 4, 2025.
- M. Gonsalves, “Thai Cyber Police apprehended a 33-year-old South Korean man…,” LinkedIn, c. Sep. 2025.
- Plutus Insights, “The Big Deal #12: When Crime Meets Finance — The ‘Amazon for Criminals’,” LinkedIn, c. Sep. 2025.
- Dr Fakkeerappa Kaginelli IPS, “Hong Kong’s New Crypto Custody Rulebook,” LinkedIn, c. Sep. 2025.
- Sarvesh Agrahari, “Crypto Custody Standards – A Wake-Up Call for India,” LinkedIn, c. Sep. 2025.
- D. Rogers, “The “Shadow Dollar” Revolution: Why your AML team needs to know about Tether,” LinkedIn, c. Sep. 2025.
- Jitender Bhardwaj, CAMS, “Good Morning, AML & Compliance Community!,” LinkedIn, c. Sep. 2025.
- FX Insider, “Regulatory Scrutiny Intensifies for Binance in Australia,” LinkedIn, c. Sep. 2025.
- Yirifi.ai, “Digital Assets in the last 24 hours,” LinkedIn, c. Sep. 2025.
- Bulgarian Association of Anti-Financial Crime Experts, “FinCEN Notice on CVC Kiosks,” LinkedIn, c. Sep. 2025.
