Law enforcement agencies in Europe have successfully carried out a series of arrests this week in connection with a major crypto-investment fraud operation. The crackdown, coordinated by Europol, resulted in 14 arrests in Serbia and one in Germany. Additionally, 261 individuals were questioned in countries such as Cyprus and Bulgaria as part of the action day on January 11.
The operation targeted a criminal network that was suspected of running a sophisticated scheme to defraud victims through cryptocurrency investments. Europol reported that 22 locations, including private homes and four call centers allegedly used in the fraudulent activities, were searched during the operation.
According to Europol, the suspects used social media advertisements to attract victims to websites controlled by the criminals. These websites offered fraudulent investment opportunities in cryptocurrencies, promising high returns on investment. Victims, primarily from Germany, were initially lured in with small investments before being convinced to transfer larger sums of money based on fake price increases.
German authorities estimated that victims had suffered financial losses totaling approximately €2 million ($2 million). However, Europol believes that the actual number of unreported cases may be significantly higher, with victims located in countries such as Switzerland, Australia, and Canada. The criminal groups behind the scheme are believed to have profited substantially, potentially earning hundreds of millions of euros through their fraudulent activities.
During the operation, law enforcement officers seized three hardware wallets containing around $1 million worth of cryptocurrencies, €50,000 ($54,000) in cash, three vehicles, electronic equipment, data backups, and various documents. The use of call centers by fraud rings to deceive victims has become an increasingly common tactic.
In a separate incident earlier this month, Ukrainian police dismantled a call center operation accused of defrauding an estimated 18,000 victims in Kazakhstan. The scammers working in the call center would impersonate bank IT department employees when contacting their targets.
These recent law enforcement actions highlight the ongoing efforts to combat cryptocurrency-related fraud and protect investors from falling victim to fraudulent schemes. Europol and other agencies continue to work tirelessly to disrupt criminal networks engaged in financial crimes across Europe.