Compass Investments

– Nine people in Cyprus, Spain and Germany have been arrested for a 600 million euro cryptocurrency scam.

Eurojust coordinated the multinational operation with agencies from five EU member states.

More than 1.5 million euros worth of assets were seized, including cryptocurrency, cash and bank accounts.

The one-time seizures took place from October 27 to 29 in Cyprus, Spain and Germany, following an in-depth investigation by Eurojust, the EU’s judicial liaison center.

Suspicion falls on a criminal gang that is believed to have created dozens of fake crypto-investment websites that mimicked legitimate ones. Victims were lured through social media ads, cold calls, fabricated news headlines and fake celebrity endorsements. Once funds were transferred, users were simply blocked and the money was withdrawn through blockchain-based laundering schemes specifically to cover their tracks.

To neutralize the network, Eurojust initiated a joint investigation team (JIT) involving France and Belgium, which was later expanded to include Cyprus, Spain and Germany. The agency brought together prosecutors and investigators from all five countries to plan synchronized searches across Europe.

The coordinated action resulted in the arrest of nine people at their residences and the seizure of assets worth more than 1.5 million, including 800,000 in bank accounts, 415,000 in cryptocurrency and 300,000 in cash.

The investigation began after multiple victims said they were unable to access their finances on fake trading platforms. The Paris prosecutor’s office said the operation, which began in 2023, identified hundreds of defrauded residents of France and other European countries who were persuaded to invest in fraudulent schemes.

The operation involved the cyber unit of the French Gendarmerie, the Belgian Federal Judicial Police (Limburg), the Cypriot MOKAS, the Cologne Public Prosecutor’s Office, the Mossos d’Esquadra and the Spanish National Police.

Europol highlighted the increasing sophistication and organization of cryptocrime, noting that criminals are using advanced blockchain tools to disguise illicit transactions. The agency emphasized that the “limitless nature” of cryptocurrencies requires a proportionately coordinated international response.

Enhanced collaboration between law enforcement, the private sector and academic centers is helping to uncover sophisticated money laundering schemes and bring perpetrators to justice.