Albanian and Italian authorities have shut down an online cryptocurrency investment fraud scheme that siphoned €15 million ($16 million) in digital assets from investors.

Authorities Dismantle Online Crypto Fraud

According to an official press release, the investigation was carried out with the help of the European Union Agency for Criminal Justice Cooperation (Eurojust).

The Public Prosecutor’s Office of Pisa, the Italian agency involved in the matter, first opened the case at Eurojust in 2020. Subsequently, a joint investigation team (JIT) was formed and jointly funded.

During the investigation, the JIT discovered that the fraudulent scheme was perpetrated by an organised crime group (OCG) from a call centre in Tirana, Albania. The fraudsters reached their victims via telephone using unidentifiable numbers and delocalised virtual private networks (VPNs).

The perpetrators persuaded the victims to create accounts on certain portals and reset the accounts after they had been largely funded. They embezzled the funds and became untraceable.

First, they gained the trust of their prey by giving them quick financial gains for their initial investments. Then, some online trading platforms contacted the victims, acted as brokers, and proposed profitable crypto investments with zero risks.

During the second stage of the scheme, members of the OCG used remote control software to secure access to the victims’ home banking pages and urged them to invest their whole economic capital.

Finally, when some victims discovered the fraudulent scheme, they were contacted by the perpetrators and encouraged to make extra payments to recover their lost funds. In doing so, they lost more funds.

The OCG members embezzled approximately $16 million from their victims.

About $4M Seized During Search

In the wake of their findings, the JIT issued precautionary detention orders against the main suspects of the OCG from December 13 to 15 and searched 13 locations in Albania.

The investigation team seized more than 160 electronic devices, including computers, servers, digital video recorders, and a mobile phone. The team also confiscated €3 million ($4 million) in assets, including 11 properties from undisclosed locations in Italy.

~ By William A. Frederick ~