Budapest Crackdown: 16 Arrested in €44 Million Money Laundering and Fraud Case
Sixteen Individuals Charged in Criminal Network Dismantlement
On May 9, sixteen individuals were taken into custody in Budapest as part of an international operation to dismantle a criminal network involved in money laundering and fraud activities worth approximately €44 million 1.
Key Players Arrested
Five of those arrested allegedly played key roles in moving funds across Europe, South America, and Australia. These funds were primarily derived from fraud and cryptocurrency scams 1.
Operation Shadowgate: An 11-Month-Long Joint Investigation
The investigation, named “Operation Shadowgate,” began in September 2020 1. The primary focus was on a criminal organization headquartered in Hungary, which aimed to launder proceeds from fraud and cryptocurrency-related scams 1.
Raids and Seizures
As a result of the investigation, officers conducted raids on 24 locations in Budapest. Several firearms and ammunition, computers, mobile phones, SIM cards, payment cards, jewelry, and over €120,000 in cash in various currencies were seized 1.
Creating a Vast Network of ‘Front’ Companies
The organization operated by creating a vast network of ‘front’ companies 1. Most of these companies showed no evidence of meaningful business activities, while others were bought by ‘strawmen,’ who handed over their personal information in return for a payment 1.
Money Laundering Scheme
Once the accounts were established, they became vehicles for a broader money laundering scheme 1. Funds from various countries were transferred into these accounts, which in turn wired the funds to others 1.
Identifying the Criminal Network
Europol identified 44 individuals involved in this elaborate scheme, including the 16 individuals now under detention 1. They are being investigated for their involvement in industrial-scale money laundering, as well as other criminal activities 1.
International Collaboration
The investigation involved close collaboration between Europol and Hungarian law enforcement agencies, including the National Tax and Customs Administration and the Budapest Metropolitan Police Headquarters 1. Europol provided operational and analytical support, allowing for the criminal activities to be disrupted and the organization to be dismantled once and for all 1.
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