European law enforcement authorities made a significant breakthrough in the fight against crypto-related organized crime in January with the arrest of 17 suspects allegedly involved in operating a "mafia crypto bank." The suspects were accused of laundering over 21 million euros ($23.5 million) in cryptocurrencies for criminal entities based in China and the Middle East.
According to a statement by Europol released on May 14, the money laundering services provided by the criminal organization were reportedly carried out on behalf of other criminal networks engaged in activities such as migrant smuggling and drug trafficking. The group allegedly utilized a secret informal money transfer system known as hawala and often received compensation in cryptocurrencies for their illicit services.
The arrests took place across Europe, with 15 individuals detained in Spain, one in Austria, and one in Belgium. During the operation, authorities seized assets totaling 4.5 million euros ($5 million), including cash, cryptocurrencies, 18 vehicles, four shotguns, and various electronic devices. Of the seized amount, 183,000 euros ($205,000) was in cryptocurrencies, with an additional 421,000 euros ($471,000) confiscated from 77 bank accounts linked to the criminal organization.
Luxury items such as bags, watches, and cigars worth 876,000 euros ($980,000) were also confiscated during the operation, shedding light on the extravagant lifestyle maintained by the criminal group. Most of the arrested individuals, primarily of Chinese and Syrian nationality, have already been imprisoned on charges related to their involvement in the organization.
The investigation was spearheaded by a court in Almería, Spain, in collaboration with Europol and law enforcement agencies in Belgium. The criminal organization attempted to conceal its illicit activities by posing as a legitimate remittance business and even promoting its services on social media platforms.
The crackdown on the "mafia crypto bank" underscores the growing concerns surrounding the illicit use of cryptocurrencies for money laundering and other criminal activities. Blockchain forensics firm Chainalysis reported a significant increase in illicit crypto transactions, totaling $51.3 billion in 2024, highlighting the need for enhanced regulatory measures and enforcement actions to combat financial crimes in the digital asset space.
The successful operation against the criminal network serves as a testament to the collaborative efforts of European law enforcement agencies in tackling the challenges posed by crypto-related organized crime and reinforces the importance of international cooperation in combating financial crimes in the digital age.
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