Authorities Dismantle Major Cryptocurrency Pyramid Scheme in Greece
Authorities in Greece have dismantled what they describe as a significant pyramid scheme in the cryptocurrency sector, which defrauded over 10,000 individuals out of around $9 million. This operation was framed as being linked to artificial intelligence (AI) trading, with promises to double investments in 50 days.
Police Operations and Arrests
On September 30, police executed early morning raids that led to the arrest of 17 suspects, including two alleged leaders and numerous military personnel. The operations were carried out by the Katerini Crime Investigation and Detection Subdirectorate. Authorities have also identified nine additional suspects in connection with the scheme.
The Fraudulent Organization
The fraudulent scheme was run by a group known as the Hellenic Artificial Intelligence Team Association, or AT Team Greece, which claimed to offer a legitimate investment opportunity. This organization set up branches in various cities across Greece, such as Larissa, Katerini, Peristeri, Kanalaki, and Mytilene, in a bid to appear credible. They also organized social functions, engaged in public sponsorships, and made charitable contributions to enhance their image.
The investment platform pitched itself as low-risk, promoting an AI-driven automated trading system, which allegedly promised to return double the initial investment in stablecoins like USDT or USDC. However, once victims had made their contributions, all withdrawal capabilities were disabled on September 1, under the claim of a shift in strategy, effectively trapping their funds.
Nature of the Scheme
Police have categorized the operation as a classic pyramid scheme, where funds from new investors were utilized to pay older participants, while the bulk of earnings were funneled into offshore cryptocurrency banks. Records indicate the organization had been operational since April 2025, and during initial inquiries, 18 victims recounted losses totaling $62,690.
Police Crackdown and Evidence Seizure
The police crackdown involved searches at five offices, nine residential locations, and a hotel across major cities such as Athens, Piraeus, Patras, and Ioannina. Law enforcement seized approximately $330,521 in cash along with a trove of digital evidence, which included 32 mobile phones, 15 tablets, 21 laptops, 7 desktop computers, 38 USB drives, and financial documentation. Additionally, police found items such as a flare gun, firecrackers, and metal pellets in one suspect’s residence.
Legal Proceedings
The arrested individuals are now facing prosecution after being presented to the prosecutor at the Katerini Court of First Instance, followed by referral to an investigative judge for formal proceedings. This investigation reflects ongoing global concerns regarding the rising number of scams exploiting the cryptocurrency market, highlighting the vulnerability of unsuspecting investors drawn by the promise of high returns.
