Michaela
The Spanish Civil Guard has dismantled an international criminal network, arresting five individuals accused of orchestrating a large-scale crypto fraud and laundering illicit proceeds. Authorities say the crypto scam organization defrauded more than 5,000 victims across the globe, with estimated losses totaling nearly $540 million.
According to local reports, authorities dismantled the international criminal organization as part of Operation BOREELLI, targeting a Hong Kong-based company allegedly involved in fraudulent FOREX market investments.
In addition to five arrests, law enforcement conducted searches in Madrid and the Canary Islands. Investigators estimate that the scheme defrauded victims of approximately $498 million (€460 million) globally, including $42 million (€39 million) from Spanish nationals. Additionally, reports indicated that a substantial quantity of cryptocurrency was seized during the enforcement phase of the operation.
Authorities allege that the crypto scam organization’s leaders operated a global fundraising network, relying on sales agents to collect money via cash withdrawals, bank transfers, and cryptocurrency transactions.
To conceal the origins and movement of illicit funds, the crypto scam organization is said to have established an international web of corporate entities and bank accounts. Investigators also found that payment gateways and exchange accounts registered under various names were used to receive, hold, and transfer the proceeds.
The European Union Agency for Law Enforcement Cooperation (Europol) began assisting Spanish authorities in 2023 with their investigation into the large-scale crypto fraud network. Europol provided strategic analysis, operational backing, and coordinated efforts across borders. Its financial crime specialists played a key role in supporting the probe as it expanded internationally.
Authorities involved in the investigation included the Estonian Police and Border Guard Board, France’s New Caledonia National Gendarmerie, and U.S. Homeland Security Investigations.
This case emphasizes the growing challenges law enforcement faces in tackling online fraud linked to cryptocurrencies. As digital assets become more widespread, international cooperation and advanced investigative tools remain crucial in protecting investors and maintaining trust in the evolving crypto landscape.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
