Authorities in Europe have dismantled a massive cryptocurrency-based money laundering network that moved over €21 million for criminal groups across China and the Middle East.
According to a May 14 statement, Europol coordinated with Spanish, Belgian, and Austrian law enforcement in January to arrest 17 suspects accused of running a parallel banking structure.
The operation followed earlier investigations into migrant smuggling and drug trafficking rings that reportedly relied on the group’s illicit financial services.
The dismantled organization operated a hawala-style money transfer system, allowing clients to bypass formal banking channels.
Europol described the network as “one of the most significant in this crime area”, which offered cash courier services and crypto-for-cash exchanges to criminal groups.
Investigators found the group ran two core branches, with one targeting Arabic-speaking clients and another servicing Chinese networks.
Spanish authorities said 13 property searches were carried out across multiple cities, including Madrid, Valencia, Málaga, Almería, and Cádiz. Of the 17 individuals arrested, 15 have already been jailed. Most of the suspects were of Chinese and Syrian origin.
Among the seized assets were €183,000 in crypto (approx. $205,000), €206,000 in cash (approx. $230,700), and €421,000 across 77 bank accounts (approx. $471,500). Authorities also blocked 10 real estate properties worth over €2.5 million (approx. $2.8 million), confiscated 18 vehicles, four shotguns, and dozens of encrypted electronic devices.
Additional luxury items included cigars valued at over €622,000 (approx. $696,600), branded handbags worth more than €230,000 (approx. $257,600), and high-end watches and wines.
The group allegedly advertised its laundering services on social media, masking its operations as a legitimate remittance provider.
Local media described the group as “the most powerful international organization” in its field. One suspect, identified as a key hawaladar, allegedly managed transaction records and appointed trusted brokers to coordinate the group’s branches.
Authorities documented 32 money transfers worth over €5.5 million in just three months. One crypto wallet used as a transfer hub reportedly handled over 21 million euros ($23.5 million) between mid-2022 and late 2023.
The crackdown comes amid a broader push by European agencies to tackle crypto-related crime.
Earlier this month, Frankfurt authorities shut down crypto exchange eXch, which was used to launder funds from some of the biggest hacks in recent years, including the $1.5 billion Bybit breach and the $1.4 billion Multisig exploit.
According to a May 9 announcement, the Frankfurt Prosecutor’s Office seized crypto assets worth €34 million (around $38.2 million), calling it the third-largest crypto seizure in the BKA’s history.
Officials accused the team behind eXch of running a criminal trading platform and engaging in large-scale money laundering. The exchange reportedly had ties to the FixedFloat exploit, Genesis Creditor theft, and various phishing scams, according to on-chain sleuth ZachXBT.
