The law enforcement agencies from Austria, Cyprus, and
Czechia uncovered a cryptocurrency scam that defrauded investors out of
millions early this month. This international collaboration, supported by Europol and
Eurojust, led to the arrest of six Austrian suspects and the seizure of
substantial crypto assets worth over EUR 500,000 and EUR 250,000 fiat
currency.
According to Europol, the fraudsters launched this
scam in December 2017, presenting themselves as a legitimate online trading
company with a new cryptocurrency offering. They managed to collect millions
from investors by promising a revolutionary new cryptocurrency backed by unique
software and an algorithm. Investors bought into this scheme with established
cryptocurrencies like Bitcoin and Ethereum.
However, the project’s Initial Coin Offering was not transparent, and by February 2018, the perpetrators abruptly removed the company’s online presence. They deleted social media accounts and websites, leaving investors in uncertainty. It quickly became clear that the investors had been deceived by the exit scam.
Europol and Eurojust played crucial roles in the
investigation and subsequent crackdown. Europol organized five operational
meetings and facilitated a comprehensive analysis of the case. A specialist
from the agency was deployed to Cyprus to aid in the operation and ensure a seamless exchange of information.
On the other hand, Eurojust supported the operation
through a coordination center that enabled real-time communication between
judicial authorities. This coordination was vital for the swift execution of
European arrest warrants and search warrants. Austrian police officers went to Cyprus to assist with the
investigation and the interrogation of the primary suspect.
Assets Seized and Justice Served
The coordinated efforts led to the execution of six
house searches, resulting in the seizure of digital assets and fiat currencies. Authorities also froze
numerous bank accounts and confiscated two luxury cars and a property valued at
EUR 1,400,000.
According to Europol, the arrests and asset seizures
marked a significant victory against cybercrime, particularly in the
increasingly complex and evolving world of cryptocurrency fraud. The ongoing
investigation aims to identify all victims and ensure that justice is served
for those defrauded by this scheme.
Last year, Europol reported another successful crackdown that led to the arrest of five individuals perpetrating fraudulent online investment schemes, including binary options. In 2021, authorities in Bulgaria, Cyprus, Germany, the Netherlands, and Ukraine, in collaboration with Europol, took down the crime syndicate, arresting one suspect in Cyprus. This scheme affected at least 33,000 victims and resulted in about €89 million in losses.
The law enforcement agencies from Austria, Cyprus, and
Czechia uncovered a cryptocurrency scam that defrauded investors out of
millions early this month. This international collaboration, supported by Europol and
Eurojust, led to the arrest of six Austrian suspects and the seizure of
substantial crypto assets worth over EUR 500,000 and EUR 250,000 fiat
currency.
According to Europol, the fraudsters launched this
scam in December 2017, presenting themselves as a legitimate online trading
company with a new cryptocurrency offering. They managed to collect millions
from investors by promising a revolutionary new cryptocurrency backed by unique
software and an algorithm. Investors bought into this scheme with established
cryptocurrencies like Bitcoin and Ethereum.
However, the project’s Initial Coin Offering was not transparent, and by February 2018, the perpetrators abruptly removed the company’s online presence. They deleted social media accounts and websites, leaving investors in uncertainty. It quickly became clear that the investors had been deceived by the exit scam.
Europol and Eurojust played crucial roles in the
investigation and subsequent crackdown. Europol organized five operational
meetings and facilitated a comprehensive analysis of the case. A specialist
from the agency was deployed to Cyprus to aid in the operation and ensure a seamless exchange of information.
On the other hand, Eurojust supported the operation
through a coordination center that enabled real-time communication between
judicial authorities. This coordination was vital for the swift execution of
European arrest warrants and search warrants. Austrian police officers went to Cyprus to assist with the
investigation and the interrogation of the primary suspect.
Assets Seized and Justice Served
The coordinated efforts led to the execution of six
house searches, resulting in the seizure of digital assets and fiat currencies. Authorities also froze
numerous bank accounts and confiscated two luxury cars and a property valued at
EUR 1,400,000.
According to Europol, the arrests and asset seizures
marked a significant victory against cybercrime, particularly in the
increasingly complex and evolving world of cryptocurrency fraud. The ongoing
investigation aims to identify all victims and ensure that justice is served
for those defrauded by this scheme.
Last year, Europol reported another successful crackdown that led to the arrest of five individuals perpetrating fraudulent online investment schemes, including binary options. In 2021, authorities in Bulgaria, Cyprus, Germany, the Netherlands, and Ukraine, in collaboration with Europol, took down the crime syndicate, arresting one suspect in Cyprus. This scheme affected at least 33,000 victims and resulted in about €89 million in losses.
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