In a massive international operation, Spanish law enforcement, in collaboration with Europol and partners from the United States, Estonia, and France, have arrested five individuals suspected of running a sophisticated €460 million cryptocurrency fraud network. The coordinated raids, conducted on 25 June, targeted locations in Madrid and the Canary Islands, resulting in three arrests on the islands and two in the Spanish capital.

According to the Guardia Civil, the dismantled organization is believed to be one of the most extensive crypto fraud networks ever uncovered in Europe. Investigators allege the group operated an elaborate scheme through a global web of sales agents who lured victims into investing in bogus cryptocurrency opportunities. Funds were collected via bank transfers, cash, and crypto transactions from over 5,000 victims worldwide.

The suspects allegedly established a layered corporate and financial infrastructure in Hong Kong, enabling them to obscure the flow of illicit funds. Payment gateways and exchange accounts were reportedly registered under false names, complicating efforts to trace the criminal proceeds. This financial camouflage allowed the group to launder hundreds of millions of euros undetected until now.

Authorities emphasized that the investigation remains ongoing, as further forensic analysis of digital wallets, transaction histories, and corporate ties continues. Europol played a critical role in coordinating intelligence, forensic support, and cross-border cooperation, enabling swift and synchronized actions across multiple jurisdictions.

The takedown comes shortly after a similar joint operation earlier this month that disrupted a smaller €3 million online investment scam run by a transnational group across Germany, Cyprus, Albania, the UK, and Israel. That scheme involved fake trading platforms and high-pressure tactics from bogus brokers to convince victims to keep investing in phantom assets.

In its March report, Europol warned that online fraud, particularly involving cryptocurrency, is rapidly emerging as one of the most significant organized crime threats in the EU. With the rise of artificial intelligence tools making scams more convincing, authorities fear that crypto-related fraud will soon surpass traditional financial crimes.

This latest operation underscores the urgency for enhanced international cooperation and stronger regulatory frameworks to combat the rising tide of cyber-enabled financial crimes across Europe and beyond.