European law enforcement agencies, with the assistance of Europol, successfully dismantled a large-scale ‘crypto mafia bank’ in January. The operation resulted in the arrest of 17 individuals implicated in laundering over 21 million euros (approximately $23.5 million) worth of cryptocurrency for criminal organizations in China and the Middle East.
The illegal operation allegedly facilitated money laundering for criminal networks involved in drug trafficking and illegal immigration. According to a statement released by Europol on May 14, the criminals operated a secret unregulated money transfer system known as hawala, often receiving payment in cryptocurrency.
The arrests included 15 individuals in Spain, one in Austria, and one in Belgium. Law enforcement authorities also seized assets worth 4.5 million euros ($5 million), including cash, cryptocurrency, 18 vehicles, four shotguns and multiple electronic devices.
From the total seized, 183,000 euros ($205,000) was in the form of cryptocurrency. An additional 421,000 euros ($471,000) in cash was recovered from 77 bank accounts tied to the criminal organization. Spanish media outlets referred to the operation as a ‘crypto mafia bank’.
Among the seized assets were luxury items such as bags, watches, and even cigars valued at 876,000 euros ($980,000). The operation spanned multiple countries, with raids carried out across Spain, Austria, and Belgium in January 2025, involving over 250 officers.
Most of the arrested individuals, predominantly of Chinese and Syrian nationality, have already been incarcerated for involvement in crimes linked to the organization. The group targeted clients in China and the Arabic-speaking criminal underworld.
The criminal group attempted to mask its illicit activities by operating a money transfer business and even promoted these services on social media platforms. The investigation was spearheaded by a court in Almeria, Spain, which aided Europol in coordinating Spanish and Belgian authorities to dismantle the operation.
Blockchain analysis company, Chainalysis, estimates that illicit cryptocurrency transactions reached $51.3 billion in 2024, up by 11.3% from the previous year.
