Authorities across Europe have successfully dismantled a significant money laundering operation, referred to as the “mafia crypto bank.” This action resulted in the arrest of 17 suspects implicated in laundering over €21 million ($23.5 million) in cryptocurrency, primarily benefiting criminal organizations linked to China and the Middle East.
The announcement made by Europol on May 14 disclosed that this criminal network facilitated laundering activities for entities involved in serious crimes such as migrant smuggling and drug trafficking.
Utilizing a shadow banking system that employed the informal hawala method, the group routinely settled transactions in cryptocurrency to obscure the source of the funds.
Spain Leads January 2025 Arrests in Cross-Border Crypto Crime Bust
Spanish law enforcement spearheaded the investigation, revealing that the arrests took place in January 2025 across Spain, Austria, and Belgium.
In total, fifteen suspects were detained in Spain, while authorities in Austria and Belgium arrested one individual each.
The majority of those apprehended were of Chinese and Syrian descent, indicating a focus on serving criminal clients in both China and Arabic-speaking territories.
In conjunction with the arrests, officials seized assets amounting to €4.5 million ($5 million), which included €183,000 ($205,000) in cryptocurrency, €421,000 ($471,000) in cash from 77 bank accounts, and luxury items worth €876,000 ($980,000).
The confiscated goods also featured 18 vehicles, four shotguns, high-end handbags, watches, cigars, and various electronic devices.
Fifteen of the arrested individuals are considered key operatives within the organization.
Authorities Arrested 17 Criminal Bankers, EUR 4.5 Million Seized
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Europol announced on May 14 that law enforcement agencies have dismantled a sophisticated criminal parallel banking network operating across multiple European countries.
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— Cyber Security News (@The_Cyber_News) May 15, 2025
The criminal enterprise reportedly disguised its activities under the cover of a remittance business and even advertised its illicit services on social media.
The investigation was coordinated by a court in Almería, Spain, in collaboration with Belgian authorities and with assistance from Europol, involving over 250 law enforcement officers.
This operation highlights mounting anxieties regarding the use of cryptocurrency in transnational criminal activities.
A report from blockchain analytics firm Chainalysis indicated that illicit cryptocurrency transactions surged to $51.3 billion in 2024, marking an 11.3% increase from the previous year.
Crypto Hacks Surge in 2025 as Losses Top $1.74 Billion in Four Months
Blockchain security company Immunefi reported that hackers targeted crypto projects, stealing more than $92.4 million in April 2025 alone.
This figure reflects a 27.3% year-over-year increase and is more than double the losses recorded in March.
April saw 15 distinct hacking incidents, with two major attacks accounting for a significant portion of the overall losses.
In one notable exploit, UPCX, an open-source platform, experienced a loss of $70 million, while decentralized exchange KiloEx incurred losses of $7.5 million.
Additional projects affected included Loopscale, ZKsync, Term Labs, and Bitcoin Mission—all suffering losses exceeding $1 million.
As a result, the first four months of 2025 have already recorded a staggering $1.74 billion in crypto losses, surpassing the total of $1.49 billion for all of 2024.
Immunefi highlighted that Q1 2025 marked the worst quarter for crypto-related hacks in history, primarily due to significant breaches at centralized exchanges Phemex and Bybit.
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