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Spanish police have arrested five people in connection with a "crypto investment fraud ring" that laundered almost $540 million (€460 million) in illicit profits from more than 5,000 victims.
It followed a global investigation involving law enforcement from Spain, Estonia, France and the U.S that began in 2023.
Three people were detained following searches on the Canary Islands, while a further two arrests were made in Madrid.
A crypto specialist was deployed to Spain on the day of the raids, "contributing to the successful completion of the operation," Europol said in a statement announcing the operation.
The ringleaders allegedly used associates around the world to raise funds through cash withdrawals, as well as transfers made from bank accounts and crypto wallets.
It is believed a "corporate and banking network" was established in Hong Kong, which used accounts in other people's names "to receive, store and transfer criminal funds."
A YouTube video posted by Europol showed Spanish Civil Guard officers arriving at the raids, and escorting one of the suspects from a property in handcuffs.
An investigation into the network is ongoing, with Europol describing online fraud as "an epidemic affecting EU citizens, businesses and public institutions alike."
Officials fear the "scale, variety, sophistication and reach" of such schemes has now reached "unprecedented" levels.
"Europol expects online fraud to outpace other types of serious and organized crime as it is being accelerated by AI, aiding social engineering and access to data," the news release added.
A recent report by the EU law enforcement agency found that crypto is now playing a wider role "in more traditional crime areas" such as drug trafficking and migrant smuggling.
The authors went on to warn that digital assets and DeFi platforms serve as a "digital cloak" to hide money laundering.
"Cryptocurrencies remain the most significant investment fraud product in the EU," the report added. "While fraudsters mostly target individuals, companies are also occasionally targeted."
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