The Portuguese Judiciary Police (PJ), in collaboration with Europol, Eurojust, and judicial authorities from various EU countries, successfully dismantled a criminal network of cryptocurrency scammers who attempted to launder more than €10 million, as announced in a press release on May 31, 2024. Authorities conducted searches at 15 houses and dismantled 2 money mule recruitment networks allegedly working for cryptocurrency scammers involved in “rip-deal” schemes. Investigators initially focused on the money mules, tracking the financial flow to uncover the broader criminal network.
The Crime
The scammers targeted wealthy individuals with high investment power and an interest in property. By the end of the investigation, the main perpetrators of the crimes resided in France and Italy, but victims were made in Portugal, Switzerland, Italy, Romania, Spain, and Austria. They used cryptocurrencies and various applications to facilitate the scheme. After contacting the victims, they arranged meetings in luxurious locales and instructed them to download cryptocurrency management apps. Once the victims installed these applications, the criminals took over their cryptocurrency wallets online.
Additionally, the criminals outsourced the money laundering to two other networks. These networks recruited money mules—individuals who received money into their bank accounts and then transferred it to another account or withdrew it in cash, handing it to another person in exchange for a commission. The victims only realized their funds had disappeared from their cryptocurrency wallets when the payments were processed.
The Investigation
The PJ’s investigation, named “Trust,” lasted two years. Portuguese authorities were supported by Eurojust, Europol, and law enforcement agencies from Italy, Spain, France, Germany, Romania, Austria, and Switzerland. The investigation culminated in search operations across numerous countries, resulting in the arrest of 11 individuals and the seizure of a wide range of cryptocurrencies, possibly including Bitcoin, Ethereum, Decentraland, and Solana.
Future Initiatives
Following the investigation, Europol launched an online prevention campaign to raise awareness about the activities of money mules. The campaign educates the public on how schemes operate and highlights characteristics that identify the groups most vulnerable to the scheme. Besides taking these crucial steps to prevent involvement in scams, investors can also use platforms such as eToro, as it has established a good reputation in the region for being reliable and efficient.
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