Coinspeaker
European Authorities Arrest Six Involved in $6.5M Crypto Scam
European authorities have apprehended six individuals in Austria linked to a crypto scam. According to an announcement by the European Union Agency for Criminal Justice Corporation (Eurojust) on May 8, the fraud involved the illegal sale of fake digital assets online, deceiving investors out of £6 million worth around $6.5 million.
Authorities in Austria, Cyprus, and the Czech Republic joined hands in a coordinated operation supported by both Eurojust and Europol to raid six places in Europe, which resulted in the arrest of the culprits.
The Rise and Fall of the Fake Crypto Trading Company
During the arrest, law enforcements involved in the case confiscated assets belonging to the scammers, including two vehicles, a property valued at EUR 1.4 million ($1.5 million), and EUR 750,000 in cash.
The Austrian-based individuals engaged in fraudulent activity by establishing a fake crypto trading company, which operated from December 2017 to February 2018. The unnamed company also introduced an unidentified token, which it peddled to investors in exchange for other cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
In an attempt to gain investors’ trust and instill confidence in the tokens’ growth potential, the scammers falsely asserted that they had developed proprietary software and algorithms for token sales, promising to generate positive returns on investment.
However, after receiving a substantial sum from the victims, the Austrian scammers shut down the company’s website and even deleted all social media accounts associated with the firm.
The EU authorities described the action as an “exit scam”, noting that deleting the company’s website and socials was a clear indication of fraud,
Agencies Team Up to Tackle Crypto Fraud
The scammer’s luck ran out when authorities launched an investigation into the firm, eventually leading to the arrest of those involved. Despite arresting the culprits, the authorities said they are still uncovering the full extent of the crime, with some victims of the fraud yet to be identified.
The Austrian Central Public Prosecutor’s Office for Combating Economic Crimes and Corruption, Cyprus Police, and the Czech Republic National Organised Crime Agency collaborated to apprehend the scammers.
Eurojust also played a significant role in the arrest by facilitating real-time communication among all involved authorities during the operation.
Eurojust’s involvement expedited the execution of European Arrest Warrants and search warrants, while Europol supported the operation with a mobile office in Cyprus.
European Authorities Arrest Six Involved in $6.5M Crypto Scam
