Crackdown on Fraudulent Cryptocurrency Schemes
In a significant crackdown on fraudulent cryptocurrency schemes, Greek authorities have apprehended 17 individuals linked to a suspected pyramid investment operation that allegedly defrauded over 10,000 investors, amassing more than $8 million. On October 2, the Hellenic Police revealed that their investigation, centered in Katerini, disclosed a network falsely promoting cryptocurrency investments as legitimate using various company structures and an online platform.
Details of the Operation
Among the detained, nine were reported to be military personnel, including two noncommissioned officers who reportedly played key roles in the organization. According to a report from ERT News, incentives were offered to participants for recruiting new investors, thereby establishing a tiered system with leaders who orchestrated the operation while recruits facilitated further funding.
Investigators allege that the scheme created an illusion of profitability for the investors, only to leave them without their deposited funds. ERT identified multiple locations associated with the operation, including various cities such as Thessaloniki, Larissa, and Patras, as well as an island in the Dodecanese region. Furthermore, the police case file mentioned an additional nine Greek nationals, one possibly connected to the armed forces.
Scheme and Legal Proceedings
The illicit scheme reportedly began in early 2025, promising investors high returns with negligible risk, while operating without the necessary legal approvals. Authorities indicated that the fraudsters claimed they could double investments within 50 days. Following an extensive investigation period, law enforcement detained two presumed leaders along with 15 others and prepared evidence against nine additional suspects.
During searches at five offices and nine residences, police seized €295,090 in cash, multiple electronic devices including computers and mobile phones, as well as USB drives and a money-counting machine. The investigation has also confirmed at least 18 victims with reported combined losses of €55,970, despite estimates suggesting a victim count exceeding 10,000.
The detained individuals are currently facing legal proceedings as they were presented to a prosecutor in Katerini, who subsequently referred the matter to an investigating judge. This operation is part of broader efforts by Greek authorities to tackle cryptocurrency-related fraud, following previous instances of asset seizure connected to international theft incidents.
International Context
For instance, a notable seizure occurred in July 2025, linked to a $1.5 billion hack involving the Bybit exchange. In a broader context, INTERPOL has recently highlighted extensive international operations targeting cryptocurrency scams, revealing operations like Jackal IV and First Light, which have led to thousands of arrests and significant asset recoveries across multiple countries. These endeavors reflect a concerted effort by law enforcement globally to combat the rise of cryptocurrency fraud and protect unsuspecting investors.
