Title: “International Crackdown on Cryptocurrency Fraud Network: Over 25 Suspects Arrested and Millions in Assets Seized”

Dismantling of a Large-Scale Cryptocurrency Fraud Network

An international operation, supported by Eurojust and Europol, led to the dismantling of a large-scale cryptocurrency fraud network that defrauded victims in Germany, Switzerland, Austria, Australia, and Canada for tens of millions of euros (European Union Justice Executive Agency, 2023). The criminal organization, with call centers in Bulgaria, Cyprus, and Serbia, reportedly lured victims into making Initial Public Offerings (IPOs) and other investments using English and German, resulting in significant losses.

Arrests and Seized Assets

On February 23, 2023, twelve suspects were arrested: fourteen in Serbia and one in Germany (European Union Justice Executive Agency, 2023). Over 250 individuals were interviewed, and authorities seized:

1. Over 1 million US dollars worth of cryptocurrencies
2. 50,000 euros in cash
3. Three cars
4. Two luxury apartments
5. Data back-ups

Two additional action days followed, resulting in the arrest of an additional sixteen suspects and seized assets, including:

1. Cash
2. Cryptocurrency accounts
3. Vehicles

Collaboration of Agencies and Support from Eurojust and Europol

Eurojust and the Special Prosecutor’s Office for Cybercrime of the Republic of Serbia, Ministry of Interior - Service for Combating Organized Crime, Department for Cybercrime, and the Australian Federal Police International Command collaborated on the operation. Europol provided operational support and the presence of a crypto expert from Germany and Europol EC3 (European Union Agency for Law Enforcement Training, 2023).

Fraud Network and Technological Infrastructure

Believed to have defrauded thousands of victims, the fraud network used call centers in Serbia to contact potential investors. The operation’s organizers had a sophisticated technological infrastructure based in Bulgaria, and the criminal group is alleged to have laundered their illegal proceeds in Cyprus (European Union Justice Executive Agency, 2023).

Investigation Initiation and Cross-Border Cooperation

Investigations into this case were initiated by the Public Prosecutor’s Office in Stuttgart, Germany, and the State Office of Criminal Investigations of Baden-Württemberg in 2021 (European Union Agency for Law Enforcement Training, 2023). A joint investigation team (JIT) was established between Germany and Serbia with support from Eurojust.

Agencies Involved in Operation

1. Bulgaria: General Directorate National Police and Investigative Department in Sofia City PPO under the supervision of the Sofia City Prosecutors’ Office.
2. Cyprus: Crime Combating Department, Office for Executing European Investigation Orders and Letters of Request Limassol/Pafos Branch.
3. Germany: PPO Stuttgart and State Office of Criminal Investigations Baden-Württemberg.
4. Serbia: Special Public Prosecution Office for Combating High-Tech Crime, Ministry of Interior of the Republic of Serbia – Service for Combating Organized Crime.

Ongoing Support from Eurojust and Europol

Eurojust and Europol continue to support cross-border cooperation and judicial proceedings against this criminal organization.