Fragmented EU Crypto Rules Let 100 Fall to €100M Scam

Source: [1] 100 victims and €100M stolen: A large European crypto fraud network dismantled (https://www.cointribune.com/en/100-victims-and-e100m-stolen-a-large-european-crypto-fraud-network-dismantled/) [2] Police dismantles crypto fraud ring linked to €100 million in losses (https://www.bleepingcomputer.com/news/security/police-dismantles-crypto-fraud-ring-linked-to-100-million-in-losses/) [3] Eurojust Arrests 5 in €100M Cryptocurrency … (https://thehackernews.com/2025/09/eurojust-arrests-5-in-100m.html) [4] €100 million crypto fraud scheme busted in Europe (https://www.cryptopolitan.com/100-million-crypto-fraud-busted-in-europe/) [5] €100 Million Cryptocurrency Fraud Scheme Uncovered in Europe (https://theccpress.com/europe-crypto-fraud-bust-100-million/) [11] European Police Dismantle €100 Million Crypto Fraud Ring in Multi ... (https://redteamnews.com/threat-intelligence/european-police-dismantle-e100-million-crypto-fraud-ring-in-multi-nation-operation/)

A coordinated European law enforcement operation has dismantled a cryptocurrency investment fraud network responsible for defrauding over 100 victims across 23 countries and siphoning at least €100 million in stolen funds. The operation, which spanned since 2018, was led by Eurojust and supported by Europol, with simultaneous arrests and asset freezes in Spain, Portugal, Italy, Romania, Bulgaria, and Lithuania. Five suspects were detained, and multiple bank accounts were frozen as part of the investigation.

The fraudsters operated through professionally designed fake crypto investment platforms, promising high returns on digital assets. When victims attempted to withdraw funds, they were subjected to additional fees before the platforms disappeared entirely. The stolen funds were laundered through Lithuanian bank accounts, exploiting jurisdictional gaps and the cross-border nature of the European financial system. The scheme’s longevity—active for over six years—highlighted vulnerabilities in fragmented regulatory frameworks and the lack of robust investor protections in the crypto sector.

The operation involved a complex web of international collaboration. Eurojust coordinated a Joint Investigation Team (JIT) between Spain and Lithuania, while Europol provided analytical and operational support. Authorities executed search warrants in five locations across multiple countries and seized digital assets and financial records. The takedown underscores the growing sophistication of crypto-enabled fraud, where criminals leverage legitimate financial infrastructure to obscure illicit flows. The case also aligns with broader trends in 2025, including the dismantling of a $460 million crypto fraud ring in Spain and a $540 million laundering operation linked to 5,000 victims.

The fraud’s impact was felt across Europe, with victims concentrated in Germany, France, Italy, and Spain. The U.S. Federal Trade Commission reported a 25% annual increase in investment scams in 2024, with $5.7 billion in losses, underscoring the global scale of crypto-related fraud. The European case further illustrates the challenges of combating digital asset crime, as perpetrators exploit the anonymity of cryptocurrencies and the absence of harmonized regulations. For instance, the use of Lithuania as a laundering hub exploited the country’s financial systems, which were less equipped to detect cross-border crypto transactions.

Analysts emphasize that the case highlights systemic weaknesses in the crypto market. Weak trust mechanisms, limited insurance options, and delayed regulatory action create fertile ground for scams. The dismantling of this network demonstrates the potential for international cooperation to disrupt criminal activity but also underscores the need for stronger oversight. As Eurojust noted, the fragmented architecture of national regulations remains an asset for scammers, who can operate across jurisdictions with minimal accountability.

The operation’s success has not erased concerns about the future of crypto crime. The U.S. Federal Trade Commission reported a record $12.5 billion in fraud losses in 2024, with investment scams accounting for $5.7 billion. Meanwhile, Europol’s SOCTA 2025 report identified cryptocurrency and decentralized finance (DeFi) as key enablers of modern financial crime, with criminals rapidly adapting to exploit technological advancements. The European takedown, while significant, is a reminder that the crypto space remains a high-risk environment for investors, requiring both regulatory vigilance and institutional safeguards to prevent future fraud.

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