Europe’s Crypto Head Hunters Bring Down $100M Crypto Scam Operation in 23 Countries

Core Insights - A pan-European crypto scam exceeding €100 million ($118 million) has been dismantled, with fraudsters luring investors through deceptive platforms and redirecting funds to Lithuanian accounts before disappearing upon withdrawal requests [1][2] - The operation had been active since at least 2018, affecting multiple countries including Germany, France, Italy, and Spain [2] - Five suspects were arrested during coordinated raids across Spain, Portugal, Italy, Romania, and Bulgaria, with assets linked to the scheme frozen in various jurisdictions [3] - Europol, which joined the investigation in 2020, contributed expertise in seizing digital assets, marking this as the largest coordinated takedown of crypto fraud in EU history [4] Industry Context - The rise in crypto fraud in Europe correlates with increased market activity, as evidenced by a nearly 20% year-over-year rise in Bitcoin wallet activity, creating new opportunities for scammers [5] - Since 2020, investor losses from various fraud cases have surpassed €460 million [6] - The Western Balkans has been identified as a hub for laundering digital proceeds, with Russia's central bank reporting over 1,000 crypto pyramid schemes within six months [5] Regulatory Implications - The response to the scam indicates a robust law enforcement approach rather than mere warnings, highlighting the need for investors to be cautious of polished pitches and "guaranteed" returns [7]