Europol busts mafia-linked crypto bank in $23M laundering scheme

European law enforcement took down a vast money laundering operation known as the “mafia crypto bank,” apprehending 17 suspects who processed more than €21 million ($23.5 million) in cryptocurrency on behalf of criminal organizations tied to China and the Middle East.

According to a Europol statement dated May 14, the network laundered money for syndicates trafficking drugs and smuggling migrants.

The group maintained a shadow banking structure through the hawala network, frequently using crypto settlements to mask the origin of the funds.

Law enforcement arrested suspects in January 2025 throughout Spain, Austria, and Belgium, with Spanish law enforcement spearheading the operation.

Authorities arrested one person in each of Austria and Belgium, while they took the majority—15 suspects—into custody in Spain.

Most suspects, whom investigators identified as being of Chinese and Syrian background, operated primarily for criminal clientele in China and Arabic-speaking regions.

Authorities seized a combined total of €4.5 million ($5 million) in assets, including €183,000 ($205,000) in cryptocurrency, €421,000 ($471,000) in cash from dozens of bank accounts, and luxury items appraised at €876,000 ($980,000).

Among the seized property, investigators found 18 automobiles, four shotguns, branded handbags, timepieces, cigars, and multiple electronic devices.

Law enforcement currently holds fifteen suspects in custody, believing them to be key players in the criminal organization.

To obscure their true activities, the group operated as a remittance business and advertised their illicit services online via social media.

More than 250 officers participated in the operation, which a court in Almería, Spain, managed and coordinated with Belgian officials and Europol.

The crackdown highlights rising alarm regarding crypto’s role in cross-border crime.

Chainalysis reports that illicit cryptocurrency activity surged to $51.3 billion in 2024, marking an 11.3% growth from the previous year.

Two months ago, Europol warned that criminals across Europe and beyond were leveraging artificial intelligence (AI) and cryptocurrencies to enhance their illegal activities. 

Released on March 18, the Serious and Organized Crime Threat Assessment (SOCTA) highlighted how these criminals are using cutting-edge technologies to operate faster, smarter, and more effectively evade detection.