Europol helps dismantle $23M ‘mafia crypto bank’

European law enforcement in January arrested 17 suspects of a “mafia crypto bank” who are said to have laundered over 21 million euros ($23.5 million) in crypto for criminal entities in China and the Middle East.

The money laundering services were allegedly carried out on behalf of other criminal networks engaged in migrant smuggling and drug trafficking, Europol said in a May 14 statement.

Spanish authorities said the criminal organization ran a secret informal money transfer system called hawala and was often compensated in crypto.

A total of 17 individuals were arrested — 15 in Spain, one in Austria and one in Belgium — while 4.5 million euros ($5 million) worth of items were seized, including cash, crypto, 18 vehicles, four shotguns and several electronic devices.

Of the 4.5 million euros, 183,000 euros ($205,000) came as crypto. Another 421,000 euros ($471,000) in cash was seized from 77 bank accounts tied to the criminal organization, which one Spanish news outlet described as a “mafia crypto bank.”

Luxury bags, watches and even cigars worth 876,000 euros ($980,000) were also seized, Spanish officials said.

Scenes of European law enforcement efforts and assets seized from the criminal organization. Source: Europol

The arrests and asset seizures took place in January 2025, across Spain, Austria and Belgium, Europol said. More than 250 officers were involved, Spanish authorities added.

Most of those arrested have already been detained

Of the 17 arrested, 15 have already been imprisoned as alleged perpetrators of the crimes linked to the organization. 

Most of those arrested were of Chinese and Syrian nationality, targeting clients in China and the Arabic-speaking criminal world.

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The criminal organization tried to cover up its money laundering activities by operating a remittance business, and even advertised those services on social media.

The investigation was led by a court in Almería, Spain, which supported Europol’s efforts to coordinate Spanish and Belgian officials to dismantle the criminal organization.

Blockchain forensics firm Chainalysis estimates that illicit crypto transactions totaled $51.3 billion in 2024, marking an 11.3% year-on-year increase.

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