Spain cracks down on €460M crypto fraud network in Europol-backed operation

Spanish authorities, with Europol and international partners, arrested five suspects in a major operation targeting a €460 million crypto fraud network.

On 25 June, the Spanish Guardia Civil, backed by Europol and law enforcement partners from Estonia, France, and the United States, executed coordinated raids that led to the arrests of five individuals behind one of Europe’s largest crypto fraud operations to date. Three arrests were carried out on the Canary Islands and two in Madrid.

The group allegedly operated through a network of sales representatives worldwide who persuaded people to invest in fraudulent crypto schemes. They collected funds from victims through cash withdrawals, bank transfers, and crypto-transfers. According to investigators, the criminal network defrauded over 5,000 victims around the world, laundering an estimated €460 million in illicit profits.

Investigators believe the organization set up a complex corporate and banking network based in Hong Kong, using payment gateways and accounts opened under different names across various crypto exchanges. This system allowed them to receive, store, and move criminal proceeds while making it difficult for authorities to trace the money. The investigation is still ongoing.

A similar, though smaller-scale, case was uncovered just weeks earlier, when a coalition of authorities from Germany, Cyprus, Albania, the UK, and Israel — with support from Eurojust and Europol — dismantled a €3 million online investment fraud scheme. The group operated fake trading platforms and used psychological tactics via bogus brokers to convince victims to invest increasing amounts, which were never actually traded.

In Europol’s Serious and Organised Crime Threat Assessment released in March, online fraud has been identified as one of the main threats to the EU’s internal security. Furthermore, Europol anticipates that online fraud will soon surpass other forms of organized crime, driven by the growing use of AI.