In a major crackdown on crypto-enabled crime, European authorities have dismantled a sophisticated money laundering ring dubbed a “mafia crypto bank” that allegedly funnelled over €21 million ($23.5 million) in illicit funds for criminal groups in China and the Middle East.
The operation, led by Spanish law enforcement and coordinated by Europol, culminated in January 2025 with the arrest of 17 suspects — 15 in Spain, one in Austria, and one in Belgium. The group reportedly ran an underground hawala-style money transfer network, converting criminal proceeds into cryptocurrency for drug traffickers and migrant smugglers, according to Europol’s May 14 statement.
Authorities seized approximately €4.5 million ($5 million) worth of assets, including cash, crypto, luxury goods, firearms, and vehicles. Among the confiscated items were 18 cars, four shotguns, €183,000 ($205,000) in cryptocurrency, and €421,000 ($471,000) across 77 bank accounts. Spanish officials also reported seizing high-end watches, bags, and cigars valued at €876,000 ($980,000).
Investigators revealed that the syndicate attempted to disguise its operations by posing as a legitimate remittance business, even going as far as marketing its services through social media platforms. Most of the individuals arrested were of Chinese and Syrian descent, allegedly targeting criminal clients from Chinese and Arabic-speaking networks.
The investigation, spearheaded by a court in Almería, Spain, involved over 250 officers and was backed by cross-border cooperation with Belgian and Austrian authorities.
Fifteen of the 17 suspects are already in prison, facing charges related to organized crime and money laundering.
The takedown comes as illicit activity in the crypto space continues to rise. Blockchain analytics firm Chainalysis reported that crypto transactions tied to criminal activity surged to $51.3 billion in 2024, up 11.3% from the previous year.
In April, Spanish authorities dismantled a sophisticated criminal network accused of orchestrating a global, AI-driven investment scam that defrauded over $20 million from at least 208 victims.
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