Catenaa, Monday, May 19, 2025-European authorities arrested 17 suspects tied to a sophisticated money laundering network dubbed the “mafia crypto bank”, which moved over €21 million ($23.5 million) in cryptocurrency for criminal groups links with China and the Middle East.
Europol said May 14 the group laundered proceeds for migrant smugglers and drug traffickers using a shadow banking system based on the informal hawala method, frequently converting funds into cryptocurrency to hide their origin.
Spanish police led a January 2025 operation resulting in 15 arrests across Spain, plus one each in Austria and Belgium. Most suspects are of Chinese and Syrian descent, serving criminal clients in both regions.
Authorities seized €4.5 million ($5 million) in assets including €183,000 ($205,000) in crypto, €421,000 ($471,000) in cash from 77 bank accounts, and luxury goods worth nearly €876,000 ($980,000). Confiscations included 18 vehicles, firearms, designer handbags, watches, cigars, and electronics.
The network disguised itself as a remittance business, promoting illicit services on social media. The investigation was coordinated by a court in Almería, Spain, with support from Belgian officials and Europol. Over 250 officers participated in the crackdown.
The bust highlights concerns over crypto’s role in cross-border crime. Blockchain analytics firm Chainalysis reported illicit crypto transactions hit $51.3 billion in 2024, up 11.3% from the previous year.
Separately, crypto hacks surged in early 2025, with losses topping $1.74 billion in the first four months, surpassing the total for all of 2024, fueled by high-profile breaches including a $70 million exploit at UPCX.
