Spanish police dismantled a massive crypto fraud gang on 25 June after the arrest of five individuals in the course of the operation. Police in France, Estonia, and the United States were involved in the dismantling after they tracked an international con targeting over 5,000 individuals.
The Guardia Civil conducted three arrests in the Canary Islands and two in Madrid in the coordinated searches in the two regions. However, investigators revealed that the suspects laundered around €460 million using a vast network of digital wallets and shell accounts.
The group made the transactions through payment gateways and Hong Kong financial institutions through various fictitious identities and user accounts.
Their modus operandi involved transferring funds through banking channels, crypto avenues, and cash withdrawals to conceal illegal income across the border.
However, the police in Spain began the inquiry in 2023, for which Europol subsequently aided them to introduce technical expertise and operational layout.
Europol deployed the cryptocurrency crime specialist on the day of the arrest to ensure the national police had the advice they needed to execute the operation successfully.
Crypto scams relied on a global network
However, the criminal organization’s internal organization also depended greatly on the international associates who served as sales agents in order to lure new investors.
The financial scam tricked the unsuspecting public under the promise of high crypto investment profits in phony schemes. However, once victims deposited funds, they could no longer recover their money or contact the operators, who quickly rerouted the funds using digital methods.
However, Law enforcement traced digital footprints and intercepted financial transactions across continents, leading to the bust.
Authorities involved in this major takedown include Spain’s Guardia Civil, Estonia’s Police and Border Guard Board, France’s New Caledonia National Gendarmerie, and the U.S. Homeland Security Investigations.
Nonetheless, All parties continue to collaborate as the investigation moves into its next stage. Europol confirmed that more leads are under review and future arrests could follow in other countries connected to this criminal operation.
