A coordinated European law enforcement operation has dismantled a sophisticated money laundering ring, nicknamed a “mafia crypto bank,” that funneled over $23 million through crypto and informal banking systems for organized crime groups.
A Global Money Laundering Machine Disguised as a Remittance Service
In a joint effort led by Europol and Spanish law enforcement, authorities arrested 17 suspects in January 2025 for running a transnational laundering operation that catered to criminal organizations in China and the Middle East. The group is accused of helping smuggle funds for migrant trafficking and drug distribution networks.
The suspects operated a secretive hawala-based system—an informal value transfer method that bypasses traditional banking. Spanish authorities revealed that many transactions were settled in cryptocurrency, allowing for fast, untraceable global transfers.
- Arrests made in three countries: 15 in Spain, one in Austria, and one in Belgium
- Over $5 million in assets seized, including:
- $205,000 in crypto
- $471,000 in cash from 77 bank accounts
- 18 vehicles, four shotguns, and various electronics
- Luxury items such as bags, watches, and cigars worth nearly $1 million
Spanish media described the network as a “mafia crypto bank” due to its structured laundering operations and crypto reliance.
Social Media and Crypto Used to Mask Illicit Finances
According to Europol, the criminal group advertised their money transfer services on social media under the guise of a legitimate remittance business. Most of the individuals arrested are of Chinese and Syrian origin and allegedly catered to clients from Chinese and Arabic-speaking underworlds.
Fifteen of the 17 individuals arrested are already in custody as investigations continue. Over 250 officers were involved in the crackdown, which was coordinated through a court in Almería, Spain.
Crypto Crime on the Rise
The case adds to growing concerns over cryptocurrency misuse. Blockchain analytics firm Chainalysis reported that illicit crypto activity reached $51.3 billion in 2024—a rise of 11.3% from the previous year.
The dismantling of this crypto-powered network underscores law enforcement’s increasing focus on blockchain-enabled financial crimes and the need for enhanced regulatory scrutiny.
