Italian authorities have arrested 30 people accused of operating an underground banking network that laundered money through cryptocurrency and international financial institutions.
The operation, announced on October 21, 2026, targeted a car-rental business in Pero, near Milan, allegedly used as a financial hub for organized crime.
Italy's financial police, the Guardia di Finanza, conducted the investigation under the direction of Milan's anti-mafia prosecutors.
Authorities seized approximately €21 million ($23.6 million) in assets, including cash, bank deposits, cryptocurrencies, boats, jewelry and luxury watches.
Of the 30 suspects, 16 were taken into custody and 14 placed under house arrest. Two arrests occurred in Spain and another in Switzerland.
Mafia Groups Allegedly Controlled Underground Bank
Investigators believe the operation maintained connections with the 'Ndrangheta, Camorra and organized crime groups operating around Foggia in southern Italy.
According to prosecutors, three Italian nationals managed the financial network from the car-rental business.
Two allegedly maintained longstanding relationships with 'Ndrangheta clans from Crotone and had previous convictions connected to mafia investigations.
The third was reportedly associated with the Camorra's Casalesi clan.
Chinese and Albanian accomplices allegedly helped facilitate the network's financial transactions, enabling the movement of funds between companies, banks and cryptocurrency platforms.
Authorities believe the operation functioned as an informal financial institution, allowing criminal organizations to transfer and conceal money outside conventional banking channels.
Shell Companies Generated €110 Million in Fake Invoices
The alleged laundering operation relied heavily on shell companies issuing fraudulent invoices for services that were never provided.
According to investigators, these businesses generated more than €110 million in fictitious invoices.
Participating companies transferred money to the shell entities and subsequently received cash payments after commissions were deducted.
The arrangement allegedly allowed businesses to reduce their reported taxable income while providing criminal organizations with a mechanism for circulating illicit funds.
Prosecutors estimate that approximately €68 million was transferred abroad through the network.
The investigation identified financial movements involving banks in Luxembourg, Lithuania and Germany.
These international transactions reportedly formed an important part of the network's efforts to conceal the origins and destinations of funds.
Cryptocurrency Used to Move Criminal Proceeds
Cryptocurrency exchanges and digital wallets allegedly played a central role in the network's international money laundering activities.
According to Bloomberg, funds accumulated through shell companies were transferred into foreign bank accounts before reaching cryptocurrency exchanges.
The digital assets were subsequently moved into wallets allegedly controlled by the criminal organization.
Investigators also reported that drug traffickers exchanged physical cash for cryptocurrency or international bank transfers.
The network allegedly processed proceeds originating from online cryptocurrency investment scams.
These activities demonstrate how criminal organizations can combine traditional banking channels with digital asset infrastructure to move funds across jurisdictions.
However, the investigation concerns the alleged misuse of cryptocurrency services rather than evidence that cryptocurrency transactions are inherently illegal.
Financial Police Officer Among Suspects
The investigation also uncovered suspected corruption involving individuals connected to Italy's law enforcement and judicial systems.
According to regional media reports, a Guardia di Finanza inspector was placed under house arrest on corruption allegations.
Investigators also accused a Milan court employee of leaking confidential information about ongoing investigations.
A lawyer and a former financial police officer were reportedly among those implicated.
The investigation involved the Guardia di Finanza's specialized technology fraud unit and was documented in a court order exceeding 500 pages.
The allegations remain subject to judicial proceedings, and the arrests do not establish criminal guilt.
Italy Warns About Mafia Adoption of Cryptocurrency
Italian authorities have previously highlighted the increasing use of digital assets by organized crime groups.
In 2021, Italy's Anti-Mafia Investigative Directorate warned that mafia organizations were becoming increasingly familiar with cryptocurrency and dark-web technologies.
The agency specifically identified the 'Ndrangheta as a criminal organization adapting to modern financial tools.
The latest investigation illustrates how traditional money laundering techniques can operate alongside cryptocurrency transactions, particularly when shell companies and international intermediaries are involved.
For Italian authorities, the case represents a significant cross-border enforcement operation targeting alleged organized crime financing.
The €21 million seizure and 30 arrests mark another major effort to disrupt financial networks suspected of supporting mafia-linked criminal activities.
