Spanish authorities, supported by Europol and law enforcement agencies from Estonia, France, and the United States, have arrested five individuals linked to a massive cryptocurrency investment fraud. The suspects are accused of laundering €460 million (approximately $541 million) stolen from over 5,000 victims worldwide.

The arrests, which took place on June 25, 2025, involved coordinated operations in Madrid and the Canary Islands. Three arrests were made in the Canary Islands, and two in Madrid. In addition to the arrests, authorities conducted five searches across the same locations.

The criminal network allegedly used a complex web of associates across the globe to solicit funds through cash withdrawals, bank transfers, and cryptocurrency transfers. Investigators believe the organization established a corporate and banking network based in Hong Kong to receive, store, and transfer the illicit funds. This network allegedly utilized payment gateways and user accounts registered under different names and across various cryptocurrency exchanges.

Europol has been assisting Spanish authorities with the investigation since 2023, providing operational support, coordinating investigative efforts, and offering strategic analysis. A cryptocurrency specialist from Europol was also deployed to Spain to assist national investigators during the operation.

The investigation is ongoing, and authorities suggest that more arrests could be made in the coming days. Authorities did not provide specific details about how the fraud was perpetrated. However, the criminal network is alleged to have stolen funds from victims' accounts using fake crypto websites. The cryptocurrencies involved in the fraud include Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), among other digital tokens.

Europol has identified online fraud as a major threat to the EU's internal security, describing it as an "epidemic" in its 2025 threat assessment. The agency warns that the scale, variety, sophistication, and reach of online fraud schemes are unprecedented and that online fraud is expected to outpace other forms of serious and organized crime, accelerated by advancements in AI.

This recent bust highlights the growing problem of cryptocurrency-related crime and the importance of international cooperation in combating these sophisticated schemes. It also follows reports that crypto investors have lost $2.1 billion to hacks, thefts, and scams in the first half of the year, marking the worst six-month period on record for digital asset security.