Europol Shuts Down $23 Million Cryptocurrency Laundering Network
Date: 2025-05-20 Author: Gabriel Deangelo Categories: IN WORLD
Europol has carried out a large-scale operation that resulted in the dismantling of a transnational network that laundered over 21 million euros through shadow schemes, including cryptocurrency transactions and the informal hawala transfer system. During raids in Spain, Austria and Belgium, 17 members of the criminal group were detained.
According to investigators, the network provided illegal financial services, including parallel banking, cash transportation, cryptocurrency exchange for fiat money and courier delivery of funds. A key element of the scheme was the integration of crypto assets into the hawala system, which allowed participants to hide the movement of money from traditional banking mechanisms.
The assets found are staggering in scale: over $229,000 in cash, over $204,000 in cryptocurrency, 18 luxury cars worth $232,000, ten properties worth over $2.8 million, and collections of luxury cigars and designer bags worth about $960,000. The total value of the confiscated property exceeded $3.5 million.
The investigation revealed that the organization’s structure was divided into two main groups: one, consisting mainly of Chinese citizens, was engaged in collecting cash in Spain. The other, which included citizens of Arab countries, was responsible for the international transfer of money. This model allowed for efficient and discreet transactions with minimal traces.
The hawala system, according to IMF senior economist Mohamed El-Korchi, is a way to transfer funds without the participation of formal banks. The money does not physically move, but is transferred through a network of intermediaries - "hawaladars" who ensure the transfer by proxy, often leaving no digital traces.
Most of the clients of this criminal scheme were from mainland China and the Middle East. Europol's operation was another step in the fight against such mechanisms, especially against the backdrop of EU initiatives to tighten control over cryptocurrency transactions.
Irish Finance Minister Paschal Donohoe noted that the EU is considering introducing requirements for storing data on senders and recipients of transactions, including for platforms working with crypto assets. This measure may become part of a new package of regulations for digital finance.
The operation was carried out with the active participation of Europol, including sending agents to Spain, Austria and Belgium, as well as funding the missions of Spanish investigators.
