The law enforcement agencies from Austria, Cyprus, and
Czechia uncovered a cryptocurrency scam that defrauded investors out of
millions early this month. This international collaboration, supported by Europol and
Eurojust, led to the arrest of six Austrian suspects and the seizure of
substantial crypto assets worth over EUR 500,000 and EUR 250,000 fiat
currency.
According to Europol, the fraudsters launched this
scam in December 2017, presenting themselves as a legitimate online trading
company with a new cryptocurrency offering. They managed to collect millions
from investors by promising a revolutionary new cryptocurrency backed by unique
software and an algorithm. Investors bought into this scheme with established
cryptocurrencies like Bitcoin and Ethereum.
However, the Initial Coin Offering of the project was not transparent, and by February 2018, the perpetrators abruptly removed the
company’s online presence. They deleted social media accounts and websites,
leaving investors in uncertainty. It quickly became clear that the investors
had been deceived by the exit scam.
🚨 Austrian scammers escape investors, but not law enforcement – six suspects set up online cryptocurrency and collected millions from victims before performing exit scam
Details ⤵️https://t.co/UgNEbfOtwU— Europol (@Europol) May 8, 2024
Europol and Eurojust played crucial roles in the
investigation and subsequent crackdown. Europol organized five operational
meetings and facilitated a comprehensive analysis of the case. A specialist
from the agency was deployed to Cyprus to aid in the operation and ensure
seamless information exchange.
On the other hand, Eurojust supported the operation
through a coordination center that enabled real-time communication between
judicial authorities. This coordination was vital for the swift execution of
European Arrest Warrants and search warrants. Austrian police officers with
expertise in cryptocurrency seizures went to Cyprus to assist with the
investigation and the interrogation of the primary suspect.
Assets Seized and Justice Served
The coordinated efforts led to the execution of six
house searches, resulting in the seizure of over EUR 500,000 in
cryptocurrencies and EUR 250,000 in fiat currency. Authorities also froze
numerous bank accounts and confiscated two luxury cars and a property valued at
EUR 1,400,000.
According to Europol, the arrests and asset seizures
marked a significant victory against cybercrime, particularly in…
