Czech Republic: Six Suspected Crypto Scammers Arrested in Coordinated European Operation

In a significant European crackdown on financial crime, six individuals allegedly involved in an online crypto scam spanning the Czech Republic, Austria, and Cyprus, have been arrested. The scam, which purportedly sold rights or tokens to a new cryptocurrency, saw the seizure of EUR 750,000 in assets, a property worth EUR 1.4 million, and two cars.

The Scam

Between December 2017 and February 2018, the scammers presented themselves as the operators of a legitimate online trading company launching a new cryptocurrency. They offered investors 10 million tokens or respective rights to the new digital currency in exchange for payments in popular crypto values such as bitcoin or ethereum. The fraudsters even touted their proprietary software and algorithm for the token sale to add legitimacy. However, in February 2018, the scammers abruptly closed their social media accounts and removed their company website in an “exit scam,” leaving investors with a collective loss of approximately EUR 6 million. The number of victims is still being determined.

Collaborative European Effort

National authorities in Austria, Cyprus, and the Czech Republic collaborated on this operation, with support from Eurojust and Europol. A coordinated action day was held to apprehend the suspects, with six residences and offices searched.

Eurojust’s Role: Eurojust facilitated real-time communication between the authorities, ensuring swift execution of European Arrest Warrants and search warrants.

Europol’s Role: Europol sent a mobile office to Cyprus to assist in operational activities and information exchange.

Key Authorities Involved

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

EU’s Joint Law Enforcement Agencies

Europol and Eurojust’s roles were crucial in coordinating efforts and providing a comprehensive investigation analysis. Europol organized five operational meetings and provided support through its mobile office, while Eurojust facilitated communication and delegated arrest warrants. The European Union’s joint law enforcement agencies aim to continue collaborating on similar cases to protect potential victims and combat financial crimes in the European Union.