Law Enforcement Agencies Unearth Money Laundering Networks in Crypto Fraud Scheme

A recent crackdown by authorities from Italy, Portugal, and Europol exposed two money mule networks involved in the illicit laundering of over €10 million ($10.8 million) for cryptocurrency scammers lacking the requisite laundering skills.

Between May 21 and 27, a series of coordinated raids spanned across France, Italy, and Romania resulted in the arrest of 11 individuals, including the alleged architect behind the money laundering ring. Furthermore, fifteen residences were searched, leading to the confiscation of cryptocurrencies, valuables, and electronic devices.

The identified money mule networks operated under the direction of an organized criminal faction specializing in executing 'rip-deal' frauds. This fraudulent scheme targeted affluent individuals with an interest in property investments, deceiving them by posing as members of an esteemed international investment group.

Per Europol's insights, scammers engaged victims in luxurious settings, persuading them to download cryptocurrency management apps. Subsequently, the scammers seized control of victims' crypto wallets using sophisticated technological means.

Following the tracking of the crypto fraud perpetrators, law enforcement authorities located the money mule networks responsible for facilitating the illicit transactions. The primary culprits of the rip-deal crypto scams, lacking the expertise to effectively launder profits exceeding €10 million, sought the collaboration of the money mules for financial activities.

The prevalence of money mule operations has drawn significant attention, prompting Europol to launch the educational #DontBeaMule campaign to underscore the risks associated with participating in such criminal activities.