Spanish law enforcement has dismantled a crypto investment fraud ring and arrested five individuals linked to laundering €460 million, Europol announced today (Monday). The illegal funds came from over 5,000 victims across the globe who were caught in the crypto investment scheme.
Arrests Are Part of an Ongoing Investigation
The Spanish Guardia Civil carried out the arrests with support from Europol and law enforcement agencies in Estonia, France, and the United States. Europol joined the investigation in 2023 and has provided the Spanish authorities with coordination, operational support, and strategic analysis.
The five arrests are part of an ongoing probe.
Of the five people arrested, three were detained in the Canary Islands, one of Spain’s offshore regions, and the other two in Madrid, the country’s capital.
The five suspects are said to be part of a wider criminal ring, whose leaders reportedly used a global network of associates to collect money through cash withdrawals, bank transfers, and crypto transactions.
Investigators now believe the gang set up a business and banking structure in Hong Kong. They allegedly used payment gateways and accounts in different people’s names across various exchanges to receive, hold, and move the stolen money.
“Online fraud is an epidemic affecting EU citizens, businesses and public institutions alike,” the announcement said. “The scale, variety, sophistication and reach of online fraud schemes is unmatched. Europol expects online fraud to overtake other forms of serious and organised crime as it is being accelerated by AI, aiding social engineering and data access.”
A Rise in Investment Fraud
Earlier, the pan-European law enforcement agency blamed digital assets and artificial intelligence for a rise in cybercrime across the continent.
Authorities across Europe are stepping up efforts to curb these widespread scams. France’s financial markets regulator shut down 181 fake investment websites last year, reporting that French victims lost an average of €29,500 in 2024. It also imposed €26.5 million in penalties against 60 individuals and companies.
Belgium’s FSMA said victims in the country lost €15.9 million to fraud, with over €12.5 million linked to fake trading platforms, mainly involving cryptocurrency.
But the scams have also affected victims outside Europe. British citizens lost £1.17 billion (around US$1.6 billion) to financial fraud and scams in 2024. Australians were reported to have lost around A$119 million to scams in the early months of 2025.
This article was written by Arnab Shome at www.financemagnates.com.
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