- Europol dismantled a $700 million crypto-laundering network
- Raids in Cyprus, Germany and Spain seized $1.7 million in assets and arrested nine
- Fraudsters used fraudulent platforms, sales tactics and deep-fake celebrity ads to lure thousands of victims
Europol and several national law enforcement agencies have recently taken down a cryptocurrency and money laundering network worth more than €700 million. The network extended to several 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 evolved into a complex, far-reaching operation that exposed a vast network of fraud and money laundering,” Europol said.
Second stage – affiliate marketing
In a press release shared earlier this week, the police agency explained that the operation was divided into two parts. In the first part, coordinated police raids were carried out in Cyprus, Germany and Spain.
In these raids, police seized about $930,000 in bank accounts, about $500,000 in cryptocurrencies and about $350,000 in cash. They also seized digital devices, “high-value watches” and arrested nine people suspected of laundering cryptos stolen through fake investment and trading platforms.
The fraudsters 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 to invest even more.
In the second phase, the operation focused on affiliate marketing infrastructure that supported online fraud. “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 cases, they include deepfake videos of celebrities, politicians and tech gurus such as Donald Trump, Elon Musk or Michael Saylor. Europol says that precisely data from potential investors obtained in this way is crucial to the functioning of the crypto-fraud industry.
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