German, Bulgarian, Serbian, Cypriot Authorities Take Down Crypto Scam Network Bitcoin Regulation News

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German, Bulgarian, Serbian and Cypriot authorities have dismantled a cryptocurrency scam ring in collaboration with Europol. “The suspects used social media advertisements to lure victims to websites operated in secret by the criminals, which offered seemingly exceptional cryptocurrency investment opportunities,” Europol detailed.

Authorities crack down on cryptocurrency scams

Europol announced on Thursday that Bulgarian, Serbian, Cypriot and German authorities, together with Europol and Eurojust, have dismantled “call centers selling fake cryptos.”

The criminal network, operating through call centers, “encouraged victims to invest large sums of money in fake cryptocurrency schemes,” Europol explained, adding:

The suspects used social media advertisements to lure victims to websites operated in secret by the criminals, which offered seemingly exceptional cryptocurrency investment opportunities.

Fifteen people were arrested in this case while 261 were questioned and 22 places were searched, including four call centers. Authorities also seized three hardware wallets containing around $1 million in cryptocurrencies, around €50,000 in cash, three vehicles, electronic equipment, documents and data backups.

The victims, mostly Germans, were initially convinced to invest small amounts of money. “False price spikes leading to supposedly lucrative profits for investors then persuaded them to transfer higher amounts,” the EU law enforcement agency noted, adding:

Currently, it is estimated that the financial damage suffered by the German victims amounts to more than two million euros.

Europol further revealed that there were also victims in other countries, including Switzerland, Australia and Canada.

What do you think of the authorities’ crackdown on cryptocurrency scams? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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