tl;dr
European authorities dismantled a clandestine banking network laundering over $23 million in crypto from organized crime groups involved in migrant smuggling and drug trafficking. At least 17 individuals were arrested in Spain, Austria, and Belgium. The ring used parallel banking, illegal hawala ban...
European authorities have dismantled a crypto-based money laundering network linked to organized crime, arresting 17 individuals across Spain, Austria, and Belgium.
This clandestine banking network laundered over $23 million (€21 million) in cryptocurrencies sourced from organized crime groups engaged in migrant smuggling and drug trafficking.
The operation utilized parallel banking services, illegal hawala banking, cash collection, cash courier services, and crypto-to-cash exchanges.
Authorities seized approximately $229,600 in cash, $204,960 in cryptocurrencies, 18 luxury vehicles worth over $232,000, 10 properties valued at more than $2.8 million, high-end cigars worth around $701,000, and luxury handbags estimated at least $259,000.
The arrests stemmed from coordinated busts in Spain, Austria, and Belgium involving Europol agents supporting Spanish investigators on the ground.
The network included Chinese and Syrian nationals, with clients primarily from the Middle East and China.
Criminal factions were divided with Chinese nationals managing domestic cash collection in Spain, and Arab nationals overseeing international transfers.
They modernized the traditional hawala system — an informal fund transfer method — by integrating cryptocurrency, facilitating seamless movement of illicit funds without physical money transfers.
The hawala system, meaning "transfer" or "wire" in Arabic, operates via informal networks called "hawaladars," allowing funds to be transferred based on trust.
The EU is considering applying anti-money laundering laws to cryptocurrency transfers by tracking sender and recipient data to curb such illicit activities.
This operation highlights growing efforts by European authorities to clamp down on complex criminal financial networks exploiting digital assets.