Europol Dismantles Major Underground Banking Network Linked to Crypto Crime
Europol dismantled a network of underground bankers involved in crypto crime, facilitating money laundering for serious criminal activities like drug trafficking and weapons smuggling.
The operation followed previous efforts such as “Operations GORGON and WHITEWALL,” targeting financial networks of international crime groups. This crackdown resulted in the arrest of key figures and the seizure of millions in cash and cryptocurrency.
Europol's coordinated operation involved six countries and collaboration between organized crime and financial investigation experts. The main objective was to disrupt hidden financial services supporting criminal organizations across Europe. Authorities arrested nine suspects and seized over €25 million in cryptocurrencies, along with €35,000 in cash and valuable assets including gold and luxury goods.
The investigation stemmed from a lead by the Spanish Guardia Civil, who discovered handwritten notes on seized cash during a cocaine trafficking probe. These notes identified a British national operating an underground banking service in southern Spain, revealing a larger international network linked to the United Arab Emirates.
Uncovering the Web of Organized Crime Using Crypto
A significant finding was the involvement of digital assets in modern money laundering. A targeted individual from Albania, previously associated with Operation GORGON, was found transferring substantial amounts using virtual currencies.
Europol utilized data from EncroChat and Sky ECC, encrypted platforms, to trace connections within the criminal network. This analysis clarified the structure and participants of the organization.
The findings culminated in a coordinated action day on November 4, 2024, in Malaga, Spain, involving law enforcement agencies from Belgium, Bulgaria, the Netherlands, and the United States to target the underground bankers.
Criminal groups increasingly use digital assets to conceal illicit funds, raising concerns over the anonymity and decentralization of cryptocurrencies, which facilitate untraceable cross-border transactions. This has prompted lawmakers to advocate for stricter regulations or outright bans.
Europol, alongside public and private partners, has disrupted financial networks supporting crimes such as drug trafficking and arms smuggling, weakening the financial infrastructure of organized crime. Their ongoing efforts highlight the importance of intelligence sharing and international cooperation in combating organized crime, with Europol providing expert support during raids through analysis and forensic expertise.