European Police Dismantle Crypto Network Laundering €21 Million for Criminal Groups

Highlights:

• European police have dismantled a crypto crime ring that laundered over €21 million for criminal groups.
• The network used the hawala system and crypto to hide illegal funds.
• Police seized assets, including crypto and luxury goods, during the crackdown.

European authorities have taken down a large money laundering group that transmitted more than 21 million euros in crypto. The police associated the network with criminal enterprises in China and the Middle East. These groups were engaged in drug trafficking and migrant smuggling activities.

🚨💰 "Europol Cracks Down on 'Crypto Mafia Bank', Seizes $23 Million"https://t.co/GDM0HVFYIs

Europol shuts down a major 'crypto mafia bank' involved in laundering over $23.5M worth of cryptocurrency. The operation led to the arrest of 17 individuals and the seizure of millions… pic.twitter.com/cIjEZtBqtz

— Crypto Update IO 🚀 (@cryptoupdate_io) May 15, 2025

Officers arrested 17 people from raids in four countries in January involved in the crypto network laundering scheme. The majority of suspects were Chinese and Syrian born. They were allegedly serving criminal clients in China and Arabic regions. Europol supported the hunt and collaborated with Belgian authorities in the coordination of the actions. Authorities said that the group concealed its operations as a remittance business. However, the business was actually used as a cover to launder large amounts of money.

Shadow Banking and Hawala System Used to Conceal Crypto Network Laundering

Police found out that the organization employed a shadow banking system to move funds. They depended on the informal hawala method to conceal the money trail. Rather than carry cash, the group transferred value on networks. They mostly settled transactions in cryptocurrency to conceal the source of funds.

The suspects marketed their services through social media sites. Investigators believe this assisted them in attracting more criminal clients who required cleaning of their dirty proceeds. The network spread through several countries but worked in the dark under legitimate businesses. This made it evade detection for a very long time.

The authorities deployed over 250 officers in various parts of the nation to arrest the members of the group. Every agency collaborated closely to trace money and trace suspects. The criminals utilized a number of tools to conceal their operations. These ranged from fictitious firms, encrypted communications, and informal transfer systems.

According to officials, the group got the nickname “mafia crypto bank” because of its size and complicated setup. The members of the group served as a go-between for other gangs. Police reported that the suspects trusted each other by sharing networks. This trust allowed them to run cross border money transfers without a formal system.

Seized Assets Raise Broader Concerns

During the raids, the police confiscated assets that sum up to more than €4.5 million. This involved €183,000 worth of crypto and €421,000 in cash from 77 bank accounts. They also seized 18 vehicles and 4 shotguns. Officers seized designer handbags, luxury watches, cigars, and electronic devices that had an estimated value of €876,000.

Authorities confirmed that 15 suspects had already been jailed as the main players in the group. The rest are still being investigated. On the other hand, there is an increase in crypto-related crime. Chainalysis reported that last year, illegal transactions involving cryptocurrencies amounted to $51.3 billion. In particular, the amount is an 11.3% increase from the previous year.

Hackers were able to steal over $92.4 million in different crypto projects last month. According to Immunefi, a Web3 bug bounty platform, this was 27.3% more compared to the previous year. As of now, crypto losses this year stand at $1.74 billion. This figure has already gone past the $1.49 billion that was recorded in 2024.