Financial Crime World

Bulgaria Dismantles Multimillion-Euro Cryptocurrency Fraud Network with Eurojust and Europol Support

A coordinated effort between law enforcement agencies in Bulgaria, Cyprus, Germany, and Serbia has led to the takedown of a sophisticated cryptocurrency fraud network that defrauded victims worldwide of tens of millions of euros.

Operation Details

The operation, supported by Eurojust and Europol, resulted in:

  • The arrest of 15 individuals, including four in Serbia and one in Germany
  • The seizure of over €1 million in cryptocurrencies, €50,000 in cash, three cars, two luxury apartments, and numerous electronic devices

Network Structure and Operation

The fraudulent network operated from Bulgaria, Cyprus, and Serbia, targeting victims in:

  • Germany
  • Switzerland
  • Austria
  • Australia
  • Canada

Authorities believe that the number of identified victims is likely only a small fraction of the actual total. The network attracted potential investors online and contacted victims via phone to lure them into making small investments, often speaking English or German.

Investigation Timeline

The investigation was launched by Germany’s Public Prosecutor’s Office in Stuttgart in 2021 and uncovered high volumes of financial transactions linked to the organized crime group (OCG) behind the fraudulent scheme. The OCG used a technological infrastructure in Bulgaria and laundered illegal proceeds through Cyprus.

Key Findings

  • High volumes of financial transactions linked to the OCG
  • Technological infrastructure in Bulgaria
  • Laundering of illegal proceeds through Cyprus

Coordination and Support

The operation involved a coordination center set up by Eurojust, with participation from:

  • Germany
  • Bulgaria
  • Cyprus
  • Serbia

Additionally, Europol’s EC3 provided operational support to the joint action day, and a group of 33 German police officers participated in the actions in Bulgaria, Cyprus, and Serbia.

Joint Investigation Team

A joint investigation team between Germany and Serbia was established during a coordination meeting organized by Eurojust and Europol. The agency also provided a crypto expert from Germany to support the operation.

Ongoing Investigation

The investigation is ongoing, with authorities working to:

  • Identify additional victims
  • Recover stolen funds