In a massive crackdown on cryptocurrency scams, Austria, Cyprus, and the Czech Republic have arrested six people. Eurojust and Europol assisted in this operation, which targeted an extensive fraud selling nonexistent crypto tokens.
From December 2017 to February 2018, the fraudsters posed as a legitimate trading site. They sold 10M fake tokens — accepting payments in actual crypto such as Bitcoin and Ethereum. Their assertions about proprietary software and algorithms were intended to boost investor confidence.
However, in February 2018, the fraud ended in an exit scam, in which the con artists vanished overnight. This action cost investors roughly €6M, with many victims still unidentified.
Eurojust's coordinated effort facilitated speedy communication, allowing for the execution of arrests and search warrants. Europol provided on-site help in Cyprus as well as full investigation analysis. The operation demonstrated the effective teamwork of Austrian, Cypriot, and Czech law enforcement.
