Legal enforcement agencies from Austria, Cyprus and the Czech Republic have worked together to dismantle an online cryptocurrency wang, resulting in the arrest of six Austrians who are said to be behind the scheme.
The research, supported by Europol and Eurojust, was aimed at the orchestrators of a so -called new cryptocurrency launched in December 2017.
After six house searches, the authorities seized more than EUR 500,000 in cryptocurrencies and EUR 250,000 in Fiat -Maluta and froze countless bank accounts. In addition, assets, including two cars and a luxury real estate appreciated at EUR 1.4 million, were seized.
According to a blog post published by Europol Today, the scam unfolded between December 2017 and February 2018. During this time, the perpetrators disguised themselves as a legitimate online trading company that offers a new cryptocurrency via a first currency supply (ICO).
Investors were tempted to buy tokens with established cryptocurrencies such as Bitcoin or Ethereum. To strengthen credibility, the fraudsters claimed to have developed their own software and a unique algorithm for token sale.
However, suspicions arose due to a lack of transparency with regard to the team members and the algorithm of the cryptocurrency.
“Traditionally, an ICO will build on transparency and clearly communicate about every team member who is responsible for this,” the blog explains. “In this case there was a lack of transparency with regard to both the team members involved and the algorithm that underlie the cryptocurrency.”
In February 2018, the scammers abruptly concluded the social media accounts and website of the project and performed what is known as an exit -scam. This sudden closure exposed investors to the realization that they had been misled, although not all victims were identified.
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EUROPOL reported a crucial role in research, organizing operational meetings and offering extensive analysis. Eurojust facilitated real -time communication between judicial authorities and helped with the rapid performance of Warrants. Austrian authorities, including the Criminal Intelligence Service and the specialized Public Prosecution Service, were actively involved in the activities.