A fake network of online crypto trading platforms has generated losses of 30 million euros across Europe

Europol announced that on 11 May 2021, a large criminal network involved in investment fraud and money laundering was dismantled as a result of a cross border operation supported by Europol and Eurojust. Seizures include numerous electronic devices, real estate, jewellery, high-end vehicles and approximately €2 million in cash. Bank accounts have also been frozen and 11 arrested were made.

The investigation, led by Germany, involved law enforcement and judicial authorities from Bulgaria, Israel, Latvia, North-Macedonia, Poland, Spain and Sweden. 

At least €7 million in losses in Germany alone

The criminal network created different trading online platforms advertising substantial profits from investments in high-risk options and cryptocurrencies. The criminal group ran at least four of such professionally looking trading platforms, luring victims through advertisements in social media and search engines.

The members of the criminal group were posing as experienced brokers when contacting the victims via the call centre they had set-up. The suspects were using manipulated software to show the gains from the investments and to motivate the victims to invest even more. 

The fraud scheme, organised mainly by Israeli nationals, included call centres, ran from Bulgaria and North-Macedonia. In total, the criminal network defrauded victims across Europe of an estimated €30 million.

Victims from Germany alone suffered at least €7 million in losses while 300 complains were filed in Spain. The suspects laundered the illegal profits through bank accounts controlled or owned by shell companies based in different EU countries.