Europol Busts $23.5M Hawala Styled Crypto Laundering Scam

In a recent operation, Europol, the European Union’s law enforcement agency, dismantled a transcontinental crypto laundering syndicate that laundered at least €21 million ($23.5 million) of illegal funds across Europe, China, and the Middle East.

On 13 May 2025, Spain’s National Police carried out simultaneous raids in cooperation with Europol and Eurojust in six Spanish provinces and one location in Antwerp, Belgium. The operation, dubbed “Operation Casino,” led to the arrest of 17 individuals and the seizure of assets in what the authorities describe as a “mafia-style crypto bank.”

A statement released on May 14, 2025, revealed that 15 of the arrested individuals hail from Spain, one from Austria, and one from Belgium. The arrested individuals are mostly of Chinese and Syrian nationalities.

Europol helps dismantle $23M ‘mafia crypto bank’
Europol and Spanish law enforcement broke a money laundering network that handled over $23 million for migrant smugglers and drug traffickers.
(via https://t.co/9NX1pOS02c)

European law enforcement in January arrested 17 suspects… pic.twitter.com/2yNBqGAoU0

— Mike Alderson FRSA (@OpenEyeComms) May 15, 2025

Authorities confirmed that of the 17 arrests made, 15 have already been jailed. Furthermore, the operation followed earlier investigations into migrant smuggling and drug trafficking rings that relied on the group’s parallel illegal financial services.

The group functioned in much the same way as a Hawala network, allowing its clients to bypass formal banking channels.

Additionally, authorities revealed that the group operated two core branches to cater to both Arabic-speaking and Chinese-speaking clients and described the network as “one of the most significant in this crime area,” as the network offered crypto-for-cash exchanges to criminal groups.

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Group Advertised on Social Media as Legitimate Remittance Providers

The Arab faction of the crypto laundering operation was responsible for handling international transfers into Spain, while the Chinese faction, based out of Almeria and Madrid, collated cash to run the operations.

The group then moved the collected cash through a complex web of crypto transactions to circumvent traditional banking systems. To facilitate the transport to Spain, they concealed the cash in modified vehicles designed with hidden compartments that the authorities likened to drug trafficking techniques.

Furthermore, the authorities explained that both factions earned commissions in crypto, which made it difficult to trace the profits and uncover the actual scale of the group’s laundering activities.

Authorities have seized €183,000 in crypto (approx. $205,000), €206,000 in cash (approx. $230,700), and €421,000 across 77 bank accounts (approx. $471,500). In addition to this, the authorities have also shuttered over 10 real estate properties worth over €2.5 million (approx. $2.8 million).

Other confiscated assets include 18 vehicles, 4 shotguns, and numerous encrypted electronic devices. Not counting luxury items such as cigars valued at over €622,000 (approx. $696,600), handbags exceeding €230,000 (approx. $257,600), and high-end watches and wines.

What’s interesting is that the group advertised its parallel banking structure on social media under the guise of a legitimate remittance provider.

The authorities have noted 32 money transfers that the group conducted in the last three months, valued at over €5.5 million. A singular crypto wallet reportedly acted as a transfer hub and handled over €21 million euros ($23.5 million) from 2022 through late 2023.

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Europe’s Growing Crypto Laundering Problem

Spain, in recent years, has witnessed several high-profile cases of fraud, misappropriation of seized digital assets and crypto laundering from the proceeds of cybercrime and drug trafficking.

This latest investigation is a part of a broader crackdown on crypto-related crime by European agencies and follows other similar cases such as the Marbella scandal from earlier this month, where a court clerk allegedly embezzled €19 million in seized digital assets. Furthermore, European authorities also raided eXch, a former crypto exchange that operated without requiring Know Your Customer (KYC) verifications and was implicated in laundering illicit funds.

While the Spanish authorities have not disclosed the names of the individuals arrested, they have emphasised that the group’s network sophistication and reach make it one of the most advanced money laundering operations encountered in Europe to date.

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Key Takeaways

Europol dismantled a transcontinental crypto laundering syndicate that laundered at least €21 million of illegal funds across Europe, China, and the Middle East
Authorities have arrested 17 individuals, predominantly of Chinese and Syrian nationalities
Authorities have emphasised the crypto laundering operation as the most sophisticated instance of money laundering in the EU to date

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