Seventeen suspects linked to a so-called “mafia crypto bank” were arrested in January by European authorities, amid claims that more than €21 million ($23.5 million) in cryptocurrency had been laundered for criminal groups operating in China and the Middle East.
A money laundering network that processed over $23 million for drug traffickers and migrant smugglers was dismantled by Europol in coordination with Spanish law enforcement.
According to a statement released by Europol on May 14, the laundering of funds was reportedly conducted on behalf of other criminal organizations involved in drug trafficking and migrant smuggling.
It was stated by Spanish authorities that a covert informal money transfer system known as hawala was operated by the criminal group, with payments frequently being made in cryptocurrency.
A total of 17 individuals were taken into custody—15 in Spain, one in Austria, and one in Belgium—while assets valued at 4.5 million euros ($5 million), including cash, cryptocurrency, 18 vehicles, four shotguns, and multiple electronic devices, were confiscated.
Out of the total 4.5 million euros, approximately 183,000 euros ($205,000) were identified as cryptocurrency. An additional 421,000 euros ($471,000) in cash was confiscated from 77 bank accounts linked to the criminal group, which was referred to by a Spanish media outlet as a “mafia crypto bank.”
Items such as luxury handbags, watches, and cigars valued at 876,000 euros ($980,000) were also confiscated, according to statements made by Spanish authorities.
The arrests and confiscation of assets were carried out in January 2025 across Spain, Austria, and Belgium, as confirmed by Europol. Spanish officials reported that over 250 officers were engaged in the operation.
Majority of Arrested Individuals Already Held in Custody
Out of the 17 individuals apprehended, 15 have already been incarcerated as suspected participants in offenses associated with the organization.
The majority of those detained were identified as having Chinese and Syrian nationality, with clients in China and the Arabic-speaking criminal networks being targeted.
An attempt was made by the criminal organization to conceal its money laundering operations through the running of a remittance business, with the services even being promoted on social media platforms.
The investigation was overseen by a court in Almería, Spain, which provided support to Europol in coordinating efforts between Spanish and Belgian authorities to take down the criminal organization.
An estimated $51.3 billion in illicit cryptocurrency transactions was reported for 2024 by blockchain forensics firm Chainalysis, indicating an 11.3% rise compared to the previous year.
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