Europe Dismantles “Mafia Crypto Bank” Laundering Millions for Criminal Networks

European law enforcement agencies have arrested 17 individuals tied to an underground money laundering network dubbed a “mafia crypto bank,” which allegedly moved over €21 million ($23.5 million) in cryptocurrency on behalf of criminal groups operating in China and the Middle East. 

The arrests and seizures were carried out in January 2025 across Spain, Austria, and Belgium, according to a statement released by Europol on May 14.

The criminal operation, led predominantly by individuals of Chinese and Syrian origin, provided illicit financial services to networks involved in drug trafficking and migrant smuggling. Spanish authorities stated that the group used the informal “hawala” money transfer system, a method often employed to obscure financial trails, and received payments primarily in crypto.

Crypto, Cash, and Luxury Goods Seized in Coordinated Raids

Of the 17 suspects apprehended, 15 were captured in Spain, one in Austria, and one in Belgium. Spanish officials revealed that 15 of them have already been imprisoned on suspicion of playing key roles in the criminal organization. The coordinated raids involved more than 250 officers and led to the seizure of €4.5 million ($5 million) in assets.

Among the confiscated items were €183,000 ($205,000) in cryptocurrency, €421,000 ($471,000) in cash from 77 bank accounts, 18 vehicles, four shotguns, and several electronic devices. Additionally, luxury items such as high-end handbags, watches, and cigars worth €876,000 ($980,000) were seized. 

Spanish media reported that the group promoted its services openly through social media and posed as a legitimate remittance company to mask its illicit operations.

The investigation was spearheaded by a court in Almería, Spain, in collaboration with Belgian authorities and supported by Europol. The operation marks a major step in tackling the rising use of crypto in transnational organized crime.

Criminal Organizations on the Rise

The case highlights growing concerns about the role of cryptocurrencies in enabling global financial crime. According to blockchain analytics firm Chainalysis, illicit crypto transactions reached $51.3 billion in 2024—an 11.3% increase from the previous year.

Authorities across Europe are intensifying efforts to crack down on crypto-facilitated money laundering, particularly when linked to violent or large-scale criminal enterprises. Europol praised the effectiveness of international cooperation and modern digital forensics in bringing down the so-called mafia crypto bank.