Cryptocurrency Scam Busted: Austrian Authorities Take Down Fraudulent Scheme
In a major crackdown on cryptocurrency fraud, Austrian authorities, in collaboration with their counterparts in Cyprus and the Czech Republic, have dismantled a large-scale online scam that promised unsuspecting investors a new type of crypto coin. The coordinated operation, supported by Eurojust and Europol, resulted in the arrest of six main suspects and the seizure of assets worth EUR 750,000, a property valued at EUR 1.4 million, and two cars.
The scam, which operated between December 2017 and February 2018, involved the creation of a fake online trading company that claimed to have launched a new cryptocurrency. The fraudsters offered 10 million tokens or rights to the new currency for sale, enticing investors to part with their hard-earned money in the form of established cryptocurrencies like Bitcoin or Ethereum. To add a veneer of legitimacy to their scheme, the scammers even developed their own software and algorithm for the sale of the tokens.
Cryptocurrency scams are on the rise, and investors need to be vigilant.
However, in February 2018, the perpetrators suddenly closed all their social media accounts and took their fake company’s homepage offline, leaving investors with a bitter taste of disappointment and financial loss. The estimated loss is around EUR 6 million, although not all victims have been identified yet.
The success of the operation was made possible by the coordination centre set up by Eurojust, which enabled real-time communication between the authorities involved. This facilitated the rapid execution of European Arrest Warrants and search warrants. Europol also provided assistance with a mobile office in Cyprus, while Austrian police officers were present during a search in Cyprus.
International collaboration is key to combating cryptocurrency fraud.
The takedown of this fraudulent scheme serves as a reminder that cryptocurrency investors need to be cautious and do their due diligence before investing in any opportunity that seems too good to be true. It also highlights the importance of international collaboration in combating cryptocurrency fraud.
Cryptocurrency fraud is a growing concern, and investors need to be aware of the risks.
In conclusion, the dismantling of this fraudulent scheme is a significant victory in the fight against cryptocurrency fraud. It demonstrates the effectiveness of international collaboration and coordination in combating this growing menace. As the cryptocurrency market continues to evolve, it is essential for investors to remain vigilant and for authorities to continue working together to protect innocent people from falling prey to fraudulent schemes.
