Financial Crime World

Four Suspects Arrested in Bulgaria for Millions in Cryptocurrency and Stock Investment Fraud

Four individuals were arrested last month in Sofia, Bulgaria, on allegations of defrauding millions of euros from unsuspecting investors in a complex cybertrading fraud case.

Suspects and Arrest

  • Four individuals, including one German, one Israeli, and two Bulgarian nationals, were arrested on July 27, 2022.
  • The arrests were made during a raid on a call center.
  • The suspects were operating under the guise of professional cryptocurrency and stock investment consultants.

Alleged Fraud

  • The group ran at least four websites advertising lucrative investment opportunities.
  • Money was laundered through intricate networks.
  • Investment schemes advertised included binary options, Contracts for Difference (CFDs), Forex, or cryptocurrencies.

Initial Contact with Victims

  • Victims were initially lured in by phone calls and emails from the call center operators.
  • Financial schemes were often related to cryptocurrencies and other lucrative investment opportunities.
  • Some victims reportedly invested large sums of money on false trading platforms online.

Known Victims

  • One victim from the Ansbach district in Germany lost a sum in the six-figure range.
  • Complaints about the fraudulent scheme began coming in earlier this year.

Websites Involved

  • Websites belonging to the group included alphafinancialgroup.com, zurichfinancialgroup.cogenevacapitalgroup.com, and compromarketsgroup.com.
  • All websites have since been taken offline.

Investigation and Collaboration

  • German authorities began investigating the case in collaboration with officials from the cities of Ansbach and Bamberg.
  • Extradition orders have been issued for the suspects.
  • Equipment seized during the call center raids is being scrutinized to uncover any additional suspects involved in the scam.

Exposure of the Scam

  • The cybercrime investigation was first exposed by cybersecurity journalist Catalin Cimpanu.
  • Cimpanu gained industry notoriety for his coverage of vulnerabilities, cyberattacks, and law enforcement actions against hackers at outlets like ZDNet and Bleeping Computer.