Title: Austrian Police, Eurojust, and Europol Dismantle Multi-Million Euro Crypto Scam

Arrests Made and Assets Seized in Elaborate Online Scam

Dusseldorf, Germany

In a coordinated operation between Austrian, Cypriot, and Czech authorities, six main suspects have been arrested in relation to an online crypto scam (Reuters).
The fraudulent scheme, which deceived investors into purchasing non-existent crypto rights or tokens, resulted in the seizure of approximately EUR 750,000 in assets, a EUR 1.4 million property, and two cars.

Between December 2017 and February 2018, the scammers, believed to be based in Austria, presented themselves as the operators of a legitimate online trading company launching a new cryptocurrency.
They offered potential investors 10 million tokens or corresponding rights for sale, accepting payments in popular cryptocurrencies like bitcoin and ethereum.
The fraudsters added credibility by claiming to have developed their own software and algorithm for token sale.

In February 2018, the perpetrators abruptly closed their social media accounts and took down the fake company’s website, leaving investors with a collective loss of around EUR 6 million.
Not all victims of the fraud have been identified yet.

Eurojust provided a coordination center facilitating real-time communication among the involved agencies, enabling the expedient execution of European Arrest Warrants and search warrants.
Europol assisted in Cyprus with a mobile office and Austrian police officers on the ground.
Europol deployed a specialist to Cyprus to support operational activities and exchanging information.

Austria: Central Public Prosecutor’s Office for Combatting Economic Crimes and Corruption, Criminal IntelligenceService Austria – Cybercrime Competence Center (C4)
Cyprus: Cyprus Police
Czech Republic: National Organised Crime Agency

This is a developing story, and further updates will be provided as more information becomes available.