Austrian Police, Eurojust, and Europol Crack Down on Crypto Scam: EUR 7.5 Million in Assets Seized

Six Suspects Arrested in Joint Operation between Austrian, Cypriot, and Czech Authorities

In an international crackdown on a crypto scam, six main suspects were arrested, and over EUR 7.5 million in assets were seized. The operation, spearheaded by Eurojust and Europol, resulted from the investigation into a fraudulent scheme offering nonexistent new crypto tokens for sale.

The Scheme: Fake Company and Promised New Cryptocurrency

Between December 2017 and February 2018, the scammers established a fake online trading company to sell nonexistent tokens for traditional crypto values like bitcoin and ethereum. They promised 10 million tokens or respective rights to the new digital currency, claiming to have developed their own software and algorithm for token sales.

Scam Ends Abruptly, Leaving Investors with substantial losses

The scheme came to an end when the suspects closed all social media accounts and took down the fake company’s website in February 2018, leaving investors with a loss of around EUR 6 million. Not all victims of the fraud have been identified at this time.

Eurojust and Europol Coordination: Real-time Communication and Speedy Execution of Warrants

Eurojust provided a coordination centre, enabling real-time communication between all involved authorities and facilitating the swift execution of European Arrest Warrants and search warrants. Europol offered support through the deployment of a mobile office in Cyprus and by providing operational analysis and information exchange.

Participating Authorities

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

Combating Crypto-related Fraud and Emphasizing International Cooperation

This joint operation marks a significant step forward in combating crypto-related fraud and highlights the importance of international cooperation in addressing transnational crimes.