Austria Takes Down Massive Crypto Scam
Authorities Freeze €750,000 in Assets and Seize Property Worth €1.4 Million
In a significant crackdown on financial fraud, authorities in Austria, Cyprus, and the Czech Republic have dismantled an online scam that allegedly sold rights to a non-existent cryptocurrency. The operation, supported by Eurojust and Europol, resulted in the freezing of €750,000 in assets, seizure of property worth €1.4 million, and two cars.
Scammers Arrested and Properties Searched
The operation involved the arrest of six main suspects and searches of six locations across the three countries. The scammers had pretended to have set up a legitimate online trading company that had launched a new cryptocurrency, offering 10 million tokens or rights to investors who paid with regular cryptocurrencies such as bitcoin or ethereum.
Fake Company’s Credibility
The Austrian-based fraudsters claimed to have developed their own software and algorithm for the sale of the tokens, in an attempt to gain credibility with investors. However, they ultimately closed all their social media accounts and took down the fake company’s website, leaving investors with a loss of around €6 million.
Investigation and Coordination
Not all victims of the fraud have been identified at this stage, but authorities are working to identify those who were affected by the scam. Eurojust supported the operation with a coordination centre, enabling real-time communication between all the authorities involved, while Europol assisted with a mobile office in Cyprus and provided specialist support to the investigation.
International Cooperation
Austrian police officers were also present during a search in Cyprus, as part of the coordinated effort. The operation was the result of close cooperation between:
- Austrian Central Public Prosecutor’s Office for Combatting Economic Crimes and Corruption
- Criminal Intelligence Service Austria - Cybercrime Competence Center (C4)
- Cyprus Police
- Czech Republic’s National Organised Crime Agency