In summary
- Europol, working with authorities in six countries, dismantled a drug trafficking network that used cryptocurrencies to launder illicit profits.
- €27 million ($28.33 million) in assets were seized, including €25 million in Cryptocurrency and luxury goods.
- The operation, linked to criminal networks in Spain and Dubai, highlights the role of cryptocurrencies in organized crime.
- Byron Boston, an expert in cryptocurrency tracking, pointed out the need for specialized training and international cooperation to combat these crimes.
Europol collaborated with law enforcement authorities in six countries to dismantle an international drug trafficking network that used cryptocurrencies for its financial needs.
Europol said it has dismantled “clandestine bankers who moved and laundered the proceeds of large-scale drug trafficking and other serious crimes” in a recent announcement.
When contacted by Decrypt, Europol explained that it is “not authorized to reveal any further details.”
The action is the culmination of two investigations and led to the arrest of nine suspects. It led to the seizure of valuables, including gold and luxury goods, €35,000 in cash and €25 million in cryptocurrency, equivalent to $26.23 million. The total value of the seized assets is €27 million, equivalent to $28.33 million.
Byron Boston, a former Dallas police officer and CEO of cryptocurrency tracking firm Crypto Track, told Decrypt that cryptocurrency crime poses a very diverse set of challenges for law enforcement.
“Blockchain technology operates on principles that are vastly different from conventional financial systems, requiring a deep understanding of decentralized networks, cryptographic algorithms and public ledgers,” he said.
In this case, European authorities seized cash during a house search in connection with an investigation into cocaine trafficking in 2021. Investigators discovered handwritten inscriptions on five euro bills, providing information on who coordinated and facilitated the financial aspects of the operations. operations.
The Spanish police provided the information to Europol, which compared it with data collected in other cases. This led to the identification of a British suspect as the coordinator of the shadow banking service. The suspect allegedly had links to a criminal network based in southern Spain under the supervision of Dubai-based operators.
Additional investigation into individuals connected to the suspect led to a coordinated enforcement action on November 4, 2024 in Malaga, Spain, involving law enforcement authorities from Belgium, Bulgaria, the Netherlands, and the United States. According to the announcement, authorities discovered multiple “financial networks offering ‘crime as a service'” that were “predominantly controlled from the United Arab Emirates.”
Boston noted that such coordinated efforts are made more difficult by “the lack of standardized training for investigators in cryptocurrency crimes” and “the anonymity or pseudonymity associated with” cryptocurrency transactions. Transitioning into the cryptocurrency tracking industry required him to “not only gain new technical expertise, but also foster partnerships with technology companies and regulatory agencies to close the knowledge gap.”
The announcement follows recent reports that the UK’s National Crime Agency disrupted Russian money laundering operations involving cryptocurrencies. A set of court cases examined in late November also revealed that money laundering organizations connected to US cocaine imports from Mexico and Colombia use Tether (USDT) on a particularly large scale.
Edited by Stacy Elliott.
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