The Malta Police Force played a “key role” in a Europol international operation that dismantled a large-scale cryptocurrency fraud and money-laundering network that had laundered more than €700 million.
Coordinated across multiple jurisdictions, police actions carried out in October, November and earlier this week marked the culmination of years of investigation. Europol said the action has led to the “effective disruption of a criminal operation that spanned Europe and beyond”.
“What began as an investigation into a single fraudulent cryptocurrency platform, gradually unfolded into a complex, far-reaching operation, revealing a vast network of deceit and money laundering,” Europol said in a statement on Thursday.
The criminal network was running several fake cryptocurrency investment platforms, attracting thousands of victims through sophisticated advertisements promising high returns. Victims were then repeatedly contacted by phone, with callers pressuring them to make ongoing payments by showing inflated profits on fake commercial platforms.
“The scale of this criminal operation is vast,” Europol said.
Malta’s Blockchain Analysis Unit helped identify four cases of investment fraud in which four Maltese victims lost a total of €493,750.
The fraud involved deception through online investment schemes using various platforms, where victims were tricked by fake financial consultants, instructed to use remote-access tools, and asked to provide personal documentation. Funds were transferred via traditional banks, credit cards, and cryptocurrency.
Coordinated police rads took place in October across Cyprus, Germany, and Spain at the request of French and Belgian authorities.
These initial actions led to the arrest of nine people suspected of laundering illicit funds generated from fake cryptocurrency platforms.
Authorities seized millions of euros in assets including €800,000 in bank accounts, €415,000 in cryptocurrencies, €300,000 in cash, digital devices and high-value watches.
Apart from the Malta Police Force, authorities from Belgium Bulgaria, Cyprus, France, Germany, Israel, and Spain also took part in the Europe operation.
The second phase of Europol’s operation took place on November 25 and 26 and focused on the affiliate marketing infrastructure that supports these online scams.
“In recent years, deceptive advertisements impersonating renowned media outlets, celebrities and politicians – often using deepfake videos – have posed a significant global challenge,” Europol said.
It added that investigative authorities will continue to track the criminal organisation’s assets in the countries where it operates and resides.