Six Arrested in Connection with Austrian Crypto Fraud Scheme, €2M Worth of Assets Frozen
A joint operation involving national authorities from Austria, Cyprus, and the Czech Republic has led to the arrest of six individuals connected to an online scam related to the sale of rights or tokens for a supposed new cryptocurrency.
Supported by Eurojust and Europol, the coordinated action resulted in the seizure and freezing of assets totaling €2 million , according to an official announcement .
The operation included the execution of search warrants and the apprehension of the main suspects, the report said.
The fraudulent scheme took place between December 2017 and February 2018, during which the scammers posed as operators of a legitimate online trading company that had allegedly launched a new cryptocurrency.
They offered 10 million tokens or rights to the new currency for sale, accepting payments in established cryptocurrencies such as Bitcoin and Ethereum.
To gain credibility with investors , the fraudsters claimed to have developed their own software and algorithm for token sales.
However, in February 2018, the perpetrators abruptly closed all their social media accounts and took down the fake company’s website, executing what is commonly known as an exit scam.
This move exposed the fact that investors had been deceived , resulting in losses estimated at around €6 million.
Not all victims of the fraud have been identified at this stage.
The report said that Eurojust played a crucial role in supporting the operation against the online scam by establishing a coordination center to facilitate real-time communication among the participating authorities.
This enabled the swift execution of European Arrest Warrants and search warrants.
Europol also contributed to the operation by
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