Europol dismantles a major criminal crypto network laundering billions through hawala-style banking across Europe, China, and the Middle East. Seventeen suspects arrested, assets seized.
Europol has unveiled the details of a sweeping international crackdown on what it described as a “mafia crypto bank” used to launder tens of millions of euros in illicit funds linked to drug trafficking, migrant smuggling, and transnational organised crime.
The agency confirmed that 17 individuals were arrested in January during a coordinated operation spanning Austria, Belgium, and Spain, though the announcement was only made public on Tuesday. The suspects, Europol said, formed part of a vast criminal network that used cryptocurrency and informal hawala-style banking to clean over €21 million ($23.5 million) for clients in China and the Middle East.
According to Europol, “Following up on the successes in taking down the migrant smugglers, who relied on this criminal network’s illicit banking services, national investigators and Europol’s experts in financial crime jointly picked up a new trail.”
The investigation originated from another case involving the smuggling of migrants. Data retrieved from suspects’ mobile phones revealed a sophisticated money laundering operation. From there, law enforcement began tracing the criminal network’s financial infrastructure, leading to what Europol described as a major breakthrough in tackling illicit financial flows.
In total, assets worth €4.5 million were seized, including firearms, cash, luxury vehicles, property, and several bank accounts. The crypto mafia had attempted to disguise its illegal operation as a legitimate remittance business, aggressively promoting its services through social media. However, financial intelligence units and blockchain analysts were able to pierce through the digital veil.
“Examining the migrant smugglers’ phones led to the criminal network laundering illicit proceeds, which kicked off this latest investigation. On the action day, Europol financed three Spanish investigators to travel to Belgium and Austria,” the agency noted.
Europol further confirmed that two of its financial crime experts were deployed to Austria and Belgium to support the raids on-site, while another two were stationed in Spain to assist local authorities. Spanish officials played a central role in the judicial proceedings, with the case being processed through the country’s legal system in collaboration with the Belgian arm of Europol.
Authorities also revealed the full extent of the crypto mafia’s laundering capabilities. “Blockchain analysis reveals that the remittance service operated by the crypto mafia transferred over $50 billion in illicit funds,” the agency said.
Despite the criminals’ efforts to obscure transactions through encrypted communications and decentralized finance systems, investigators managed to untangle the web. The complex operation further highlights Europol’s growing reliance on digital forensic tools, blockchain analysis, and cross-border partnerships in tackling the evolving landscape of economic crime.
The crackdown marks a major milestone in the global fight against crypto-facilitated money laundering, sending a clear message that digital currencies are not beyond the reach of international law enforcement.
