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Spanish and EU investigators have dismantled a crypto-investment fraud ring
Five suspects have been arrested and at least €460 million have been traced
The network has defrauded more than 5,000 victims worldwide

Spanish authorities, backed by Europol and agencies in France, Estonia and the United States, have broken up a scheme that allegedly laundered €460 million ($540 million) through cryptocurrency and traditional banking channels. Five people were picked up in coordinated raids in Madrid and the Canary Islands, and officers seized evidence during five property searches. Investigators say the ring used a global maze of accounts to siphon money from more than 5,000 investors, with the investigation lasting more than two years.

Corporate Fronts Used to Funnel Funds

Europol says the operation, launched by Spain’s Guardia Civil in 2023, culminated last week when a Europol crypto-specialist flew to Spain to help secure digital evidence and trace funds in real time. The arrests follow a two-year probe in which Homeland Security Investigations and other partners tracked money flows spanning Europe, Asia and North America.

“To carry out their fraudulent activities, the leaders of the criminal network allegedly used a net of associates spread around the world to raise funds through cash withdrawals, bank transfers and crypto-transfers,” Europol noted in its announcement. Detectives believe the ring funneled proceeds through corporate fronts in Hong Kong and multiple exchange accounts held under false names, with investigators suspecting that the criminal organization set up a corporate and banking network based in Hong Kong to receive, store and transfer criminal funds.

Deep-Fake Ads Used to Manipulate Victims

The fraud relied on slick online campaigns that promised double-digit returns, luring victims from North America, Europe and Asia before draining their deposits into hard-to-trace wallets. Law-enforcement officials warn that such investment scams are growing more sophisticated, often leveraging artificial-intelligence tools to create convincing ads and deep-fake endorsements to lure in new victims. Europol has described the breadth of recent crypto frauds as “unprecedented,” and U.S. regulators reported a record $12.5 billion lost to online schemes last year.

While the core group is now in custody, investigators are combing through seized devices to map the broader network of money mules and shell companies. The Guardia Civil said further arrests are possible as forensic accountants reconcile blockchain records with banking data. Meanwhile, Europol is urging potential victims to come forward, stressing that early reporting can boost the chances of asset recovery.

The post Spanish Police Break Up $540 Million Crypto Scam appeared first on FullyCrypto.

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Filed under: Bitcoin - @ July 1, 2025 7:19 am