European Police Arrest 17 in €21M ‘Mafia Crypto Bank’ Tied to China and Middle East

Jimmy Aki
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Europol and Spanish police took down a massive “mafia crypto bank” on May 14.

The criminal network laundered over €21 million ($23.5 million) in cryptocurrency. Chinese and Middle Eastern crime groups used their services.

Seizure of €421,000 from 77 Bank Accounts Linked to Criminal Network

Europol revealed the criminal network laundered money for drug traffickers and migrant smugglers. In a coordinated strike across Europe, authorities arrested 17 suspects. 15 were apprehended in Spain, one in Austria, and one in Belgium.

Investigators seized a trove of assets, including €183,000 in cryptocurrency, €421,000 in cash spread across 77 bank accounts, and 18 vehicles.

The haul also included four shotguns, high-end electronics, and luxury items like designer watches and handbags worth €876,000.

Authorities confiscated 10 properties valued at more than €2.5 million, a major blow to the organization’s financial infrastructure.

A court in Almería, Spain, led the investigation, with Europol and police from Spain and Belgium supporting the operation. The takedown disrupts a key money pipeline for organized crime.

According to officials, the criminal group had two main divisions.

One focused on Chinese criminal groups, while the other served clients from Arabic-speaking countries. Both arms helped criminals move large amounts of money under the radar.

The mafia crypto bank didn’t use regular banks. Instead, it operated through “hawala,” an informal money transfer system based on trust and community networks.

Payments were usually made using cryptocurrency.

To attract clients, the group even advertised services on social media. They built an international client base focused on criminals looking to move or hide money without detection.

Growing Global Concern Over Crypto’s Role in Money Laundering

Cryptocurrency has become the weapon of choice for modern money launderers.

Unlike traditional banking systems, crypto moves instantly across borders, leaving faint digital traces that often vanish in the shadows. No names, no passports—just anonymous wallets shuffling dirty money worldwide.

This isn’t a local issue. It’s a global pandemic.

Earlier this week, blockchain research firm Elliptic exposed a platform called Xinbi Guarantee, a Chinese-language laundering service operating openly on Telegram.

With 230,000 users and a Colorado registration, the platform moved a staggering $8.4 billion in crypto—mostly tied to Southeast Asian scams.

Governments are also taking action.

The U.S. Treasury’s financial crime unit recently blocked the Cambodian-based Huione Group from accessing the American banking system.

Authorities say the group has processed around $4 billion in illegal funds since 2021.

Nearly $37 million went to North Korea’s Lazarus Group, notorious for cybercrime. Another $36 million flowed from investment scams, often called “pig-butchering” schemes.

Unless stricter rules are put in place, these sorts of problems will continue to grow.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.