World Crypto Global
Austrian, Cypriot, Czech Authorities Expose Crypto Scam, Six Arrested and 750k Recovered
The law enforcement agencies from Austria, Cyprus, andCzechia uncovered a cryptocurrency scam that defrauded investors out ofmillions early this month. This international collaboration, supported by Europol andEurojust, led to the arrest of six Austrian suspects and the seizure ofsubstantial crypto assets worth over EUR 500,000 and EUR 250,000 fiatcurrency.
A Sophisticated Crypto Scam
According to Europol, the fraudsters launched thisscam in December 2017, presenting themselves as a legitimate online tradingcompany with a new cryptocurrency offering. They managed to collect millionsfrom investors by promising a revolutionary new cryptocurrency backed by uniquesoftware and an algorithm. Investors bought into this scheme with establishedcryptocurrencies like Bitcoin and Ethereum.
However, the project's Initial Coin Offering was not transparent, and by February 2018, the perpetrators abruptly removed the companys online presence. They deleted social media accounts and websites, leaving investors in uncertainty. It quickly became clear that the investors had been deceived by the exit scam.
Austrian scammers escape investors, but not law enforcement six suspects set up online cryptocurrency and collected millions from victims before performing exit scamDetails https://t.co/UgNEbfOtwU
Europol (@Europol) May 8, 2024Europol and Eurojust played crucial roles in theinvestigation and subsequent crackdown. Europol organized five operationalmeetings and facilitated a comprehensive analysis of the case. A specialistfrom the agency was deployed to Cyprus to aid in the operation and ensure a seamless exchange of information.
On the other hand, Eurojust supported the operationthrough a coordination center that enabled real-time communication betweenjudicial authorities. This coordination was vital for the swift execution ofEuropean arrest warrants and search warrants. Austrian police officers went to Cyprus to assist with theinvestigation and the interrogation of the primary suspect.
Assets Seized and Justice Served
The coordinated efforts led to the execution of sixhouse searches, resulting in the seizure of digital assets and fiat currencies. Authorities also frozenumerous bank accounts and confiscated two luxury cars and a property valued atEUR 1,400,000.
According to Europol, the arrests and asset seizuresmarked a significant victory against cybercrime, particularly in theincreasingly complex and evolving world of cryptocurrency fraud. The ongoinginvestigation aims to identify all victims and ensure that justice is servedfor those defrauded by this scheme.
Last year, Europol reported another successful crackdown that led to the arrest of five individuals perpetrating fraudulent online investment schemes, including binary options. In 2021, authorities in Bulgaria, Cyprus, Germany, the Netherlands, and Ukraine, in collaboration with Europol, took down the crime syndicate, arresting one suspect in Cyprus. This scheme affected at least 33,000 victims and resulted in about 89 million in losses.
This article was written by Jared Kirui at www.financemagnates.com.
