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Eurojust Dismantles €100M Cryptocurrency Fraud, Revealing Weaknesses in International Regulation

Eurojust Dismantles €100M Cryptocurrency Fraud, Revealing Weaknesses in International Regulation

Bitget-RWA2025/09/25 18:26
By:Coin World

- Eurojust and Europol dismantled a €100M cross-border crypto scam, arresting 5 suspects across 5 EU nations in a historic takedown. - The scheme defrauded over 100 victims in 23 countries since 2018, using fake high-return platforms and rerouting funds to Lithuanian accounts. - Global crypto fraud surged in 2025, with $12.5B lost in the U.S. alone, exposing regulatory gaps as scammers exploit cross-border loopholes and AI tools. - Authorities highlight the need for stricter oversight under frameworks like

Eurojust Dismantles €100M Cryptocurrency Fraud, Revealing Weaknesses in International Regulation image 0

Source: [5] Eurojust Coordinates Action to Halt Cryptocurrency Fraud [9] European Police Dismantle €100M Crypto Fraud Ring

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September 2025 saw significant turbulence in the global cryptocurrency sector, largely triggered by major fraud incidents and increased regulatory enforcement. In a coordinated effort, Eurojust and Europol led European authorities in breaking up a cross-border crypto investment fraud worth €100 million ($118 million), which had deceived more than 100 people in 23 countries since 2018. Five individuals were taken into custody across Spain, Portugal, Italy, Romania, and Bulgaria, and authorities froze assets and accounts tied to the operation. This crackdown, considered among the largest in the EU, targeted a sophisticated investment platform that lured victims with promises of high returns. The stolen funds were funneled into Lithuanian accounts, and after paying extra fees, victims were blocked from withdrawing their money.

This major bust comes amid a broader increase in crypto-related scams. According to the U.S. Federal Trade Commission (FTC), Americans lost a record $12.5 billion to fraud in 2024, with $5.7 billion attributed to investment scams—a sharp rise from $3.8 billion in 2022. Chainalysis also reported a social engineering breach in September 2025 targeting the

Protocol, where attackers exploited a compromised Zoom client to steal $13 million. The Venus team quickly halted operations, forcibly closed the attacker’s wallet, and managed to recover the stolen assets.

Regulators have stepped up their efforts as well. In early September, South Korea’s Seoul Metropolitan Police Agency broke up another $30 million fraud ring that targeted business leaders. This scheme used phishing and impersonation tactics to steal personal information for further theft. These incidents highlight how crypto scams are becoming more advanced, now using AI to build convincing platforms and taking advantage of international regulatory gaps.

The market upheaval in September also coincided with growing institutional interest in

, which, according to Glassnode, saw wallet activity rise by over 20% year-over-year in 2025. Despite relatively stable volatility (±20% as of August 31), underlying risks persisted as criminals increasingly turned to stablecoins like (USDT) for laundering illicit funds. Europol estimates that crypto fraud has cost investors €460 million since 2020, while Russia’s central bank reported more than 1,000 crypto-related pyramid schemes in just six months.

Amid these developments, investors have become more wary. Experts caution that promises of guaranteed high returns and a lack of technical knowledge among retail investors make them easy targets for scams. The U.S. FTC found that 79% of those scammed in investment schemes lost money, with a median loss exceeding $9,000. Meanwhile, European regulators are working to strike a balance between fostering innovation and ensuring oversight, as the Markets in Crypto-Assets (MiCAR) regulations introduce stricter compliance standards for crypto service providers.

The events of September underscore the urgent need for international collaboration to combat crypto fraud. While authorities have made strides in dismantling criminal groups, the continued prevalence of large-scale scams points to ongoing weaknesses in regulatory systems. As the industry evolves, the key challenge will be to match rapid technological progress with effective regulations that can rebuild investor confidence and maintain financial stability.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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