Police searched 18 additional locations, including four call centers, and detained 14 people in Serbia and one in Germany.
- To protect investors’ money, the LEAs ran a multimillion-euro crypto fraud operation in Bulgaria, Cyprus, and Serbia.
- Authorities detained five persons after searching 18 other locations, including four call centers.
- Since a sizable portion of the victims were from Germany, 33 German police officers took part in the operation.
Press Release
The European Union’s cross-border Agency for combating organized crime, Eurojust, announced in a press release on Friday that authorities had dismantled a crypto fraud ring operating out of Bulgaria, Cyprus, and Serbia that had robbed victims of “at least tens of millions of euros.”
The takedown of a bitcoin fraud network operating out of Bulgaria, Cyprus, and Serbia was made possible by a concerted effort with the active participation of Eurojust and Europol. A professional call center set up by the network resulted in the theft of at least tens of millions of euros from several victims in Germany, Switzerland, Austria, Australia, and Canada.
Over 250 workplaces in Germany, Serbia, Bulgaria, Cyprus, and four call centers were found after 18 locations, and four contact centers were searched. Over 250 people were questioned, and more than 150 computers, other electronic devices, data backups, three automobiles, two opulent apartments, $1 million worth of cryptocurrencies, and 50,000 EUR in cash were all seized.
The strategy comprised finding prospective investors online, getting in touch with them by phone, and persuading them to make small deposits that produced quick rewards. The victims were then urged to make additional investments, which they later lost.
The number of victims that have been identified is most likely only the tip of the iceberg. High volumes of financial transactions were found during investigations into the organized crime group (OCG), which was in charge of the fraudulent contact center scheme. To administer the program, the OCG utilized a technology infrastructure in Bulgaria and ran the call centers out of Serbia. Cyprus allegedly served as the hub for the unlawful activities of money laundering.
How was the Operation Carried Out?
The network called victims frequently, using English and German to entice them into making small investments. It attracted new investors online. Victims invested extra after making initial gains but later lost that additional investment. Authorities in Serbia searched and shut down operational call centers during the operation.
A German crypto expert and the Europol EC3 were present at the coordination center that Eurojust established with Serbia, Bulgaria, Cyprus, Germany, and Bulgaria to facilitate international judicial cooperation. A joint investigation team (JIT) between Germany and Serbia was decided upon during a coordination meeting that the Agency also organized.
The combined action day from the Eurojust coordination center and two participating nations received help from Europol, which organized an operational meeting. Because a sizable portion of the victims is German, 33 German police officers took part in Bulgaria, Cyprus, and Serbia operations.
The Public Prosecutor’s Office (PPO) in Stuttgart, Germany, and the State Office of Criminal Investigations of Baden-Württemberg began looking into the online scam in 2021. To prepare for this week’s operation, Eurojust organized a coordination meeting in November 2022 and gave the JIT judicial, logistical, and financial support.
Investment Scams
Criminal networks frequently use investment schemes involving cryptocurrencies because they can prey on those looking to achieve substantial short-term financial gains. Police in Italy and Albania uncovered an alleged cryptocurrency investment fraud that made 15 million euros ($16 million) in profits. The combined investigation team seized assets worth 3 million euros, according to Eurojust’s report released on December 19. A telephone, servers, digital video recorders, and more than 160 other technological items were also seized.
Conclusion
Despite the market’s downturn this year, scammers have succeeded in preying on people looking to earn substantial short-term financial gains. That’s distinct from using cryptocurrencies to conceal the proceeds of crime due to their alleged lack of traceability.
