EU Arrests Nine in Cross-Border Crackdown on $689M Crypto Fraud Network

Cross-Border Operation Targets Major Crypto Scam

European authorities have arrested nine individuals linked to a large-scale crypto investment fraud network accused of defrauding victims of €600 million (approximately $689 million). The arrests were carried out in Cyprus, Spain, and Germany, with law enforcement assistance from France and Belgium, according to a statement from Eurojust, the EU agency for criminal justice cooperation. The coordinated operation marked a significant step in confronting international crypto-linked financial crime, though authorities have so far retrieved only a small fraction of the stolen funds.

How the Fraud Network Operated

Eurojust explained that the criminal organization built “dozens” of fraudulent investment websites and platforms, each designed to mimic legitimate crypto trading services. The group lured victims through social media marketing, influencer-style ads, cold calls, and fabricated news articles, promising high-return investment opportunities.

Once people transferred money or cryptocurrency, the funds were quickly laundered across multiple blockchain networks, making them harder to trace.

Authorities reported that only €800,000 was seized in bank accounts, €415,000 in cryptocurrency, and €300,000 in cash-a fraction of the original total. This discrepancy underscores the speed and complexity with which digital funds can be moved and concealed.

Growing Collaborative Efforts Across EU Enforcement

The investigation began when victims filed complaints that triggered early coordination between French and Belgian authorities, Eurojust noted.

Over time, the case expanded as evidence pointed toward a transnational fraud operation, bringing in prosecutors and agencies from Germany, Spain, and Cyprus. The result was a series of strategically synchronized arrests made on October 27 and 29.

The operation reflects a broader shift in EU law enforcement strategy, emphasizing cross-border data sharing and coordinated action in response to crypto-related financial crimes.

Crypto Crime Is Becoming ‘Increasingly Sophisticated’

The arrests follow warnings from Europol’s Burkhard Mühl, who leads the European Financial and Economic Crime Centre, that crypto-related criminal operations are evolving rapidly. Mühl previously stated that the use of crypto in criminal enterprises is “becoming increasingly sophisticated.”

This aligns with industry research. According to Chainalysis, crypto-related scams and fraud reached $12.4 billion in 2024, reversing declines from previous years.

Eurojust also acknowledged a rise in case volume, though it noted that EU agencies are not required to report every case, meaning official figures may underrepresent the scale of the problem.

Social Engineering Schemes Are Driving Losses Higher

Experts say that the most successful modern scams rely heavily on social manipulation rather than technical hacking. Ari Redbord, VP and Global Head of Policy at TRM Labs, noted that fraudulent investment schemes are now one of the largest and fastest-growing sources of illicit funds in crypto.

Funds are then rapidly converted into stablecoins and moved through intermediaries, making recovery extremely difficult.