Europol Busts ‘Mafia Crypto Bank’ Tied to $23M Laundering Scheme

European authorities have dismantled a sprawling money laundering network dubbed the “mafia crypto bank,” arresting 17 individuals accused of laundering over €21 million ($23.5 million) in cryptocurrency for criminal groups linked to China and the Middle East.

According to Europol’s statement on May 14, the criminal network facilitated money laundering for organizations involved in migrant smuggling and drug trafficking.

The group operated a shadow banking system using the informal hawala method, frequently settling transactions in cryptocurrency to obscure the origin of funds.

Spanish law enforcement, leading the investigation, revealed that the arrests occurred in January 2025 across Spain, Austria, and Belgium.

Fifteen suspects were apprehended in Spain, with one arrest each in Austria and Belgium.

Most of the individuals arrested were of Chinese and Syrian descent, targeting criminal clients in both China and Arabic-speaking regions.

Authorities seized a total of €4.5 million ($5 million) in assets, including €183,000 ($205,000) in crypto, €421,000 ($471,000) in cash from 77 bank accounts, and luxury goods valued at €876,000 ($980,000).

Confiscated items also included 18 vehicles, four shotguns, designer handbags, watches, cigars, and various electronic devices.

Fifteen of the 17 suspects have already been detained as alleged key figures in the organization.

Authorities Arrested 17 Criminal Bankers, EUR 4.5 Million Seized

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Europol announced on May 14 that law enforcement agencies have dismantled a sophisticated criminal parallel banking network operating across multiple European countries.

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The group reportedly masked its operations under the guise of a remittance business, even promoting its illicit services on social media platforms.

The investigation was led by a court in Almería, Spain, with coordination from Belgian officials and support from Europol. Over 250 officers were involved in the operation.

The crackdown underscores growing concern over the role of crypto in transnational crime.

Blockchain analytics firm Chainalysis reported that illicit crypto transactions reached $51.3 billion in 2024, an 11.3% increase from the previous year.

Hackers stole over $92.4 million from crypto projects in April 2025 alone, according to blockchain security firm Immunefi.

The figure represents a 27.3% year-over-year increase and more than double the losses reported in March.

April’s attacks occurred across 15 incidents, with two major exploits accounting for the bulk of the damage.

UPCX, an open-source platform, lost $70 million in a single attack, while decentralized exchange KiloEx was hit for $7.5 million.

Other affected projects included Loopscale, ZKsync, Term Labs, and Bitcoin Mission, each experiencing losses exceeding $1 million.

Cumulatively, the first four months of 2025 have already seen $1.74 billion in crypto losses—more than all of 2024, which totaled $1.49 billion.

Immunefi previously noted that Q1 2025 was the worst quarter for hacks in crypto history, driven largely by massive breaches of centralized exchanges Phemex and Bybit.

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