Europol Takes Down $23.5M Hawala-Style Crypto Money Laundering Scheme

In a recent initiative, Europol, the law enforcement agency of the European Union, dismantled a global crypto laundering operation that funneled at least €21 million ($23.5 million) of illicit funds throughout Europe, China, and the Middle East.

On May 13, 2025, Spain’s National Police executed simultaneous raids in conjunction with Europol and Eurojust across six Spanish provinces and one site in Antwerp, Belgium. The operation, referred to as “Operation Casino,” resulted in the apprehension of 17 individuals and the confiscation of assets in what officials have termed a “mafia-style crypto bank.”

A statement issued on May 14, 2025, disclosed that 15 of the detained individuals were from Spain, one from Austria, and one from Belgium. The majority of the arrested suspects are of Chinese and Syrian descent.

Europol assists in taking down $23M ‘mafia crypto bank’
Europol and Spanish authorities disrupted a money laundering ring that processed over $23 million for migrant smugglers and drug dealers.
(via https://t.co/9NX1pOS02c)

European law enforcement arrested 17 suspects in January… pic.twitter.com/2yNBqGAoU0

— Mike Alderson FRSA (@OpenEyeComms) May 15, 2025

Authorities confirmed that of the 17 individuals apprehended, 15 have been incarcerated. Moreover, the initiative followed prior inquiries into migrant smuggling and drug trafficking networks that utilized the group’s illicit financial services.

The organization operated similarly to a Hawala protocol, permitting clients to evade formal banking systems.

Furthermore, authorities disclosed that the syndicate had two main branches to serve both Arabic-speaking and Chinese-speaking clientele and referred to the network as “one of the most substantial in this criminal sector,” given its provision of crypto-for-cash exchanges to criminal enterprises.

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Group Promoted on Social Media as Authentic Remittance Providers

The Arabic sector of the crypto laundering scheme was tasked with managing international transfers into Spain, while the Chinese sector, located in Almeria and Madrid, gathered funds to sustain operations.

The assembled funds were subsequently moved through an intricate network of crypto transactions to evade traditional banking methods. To facilitate transport to Spain, they concealed the cash within modified vehicles equipped with hidden compartments, akin to methods used in drug trafficking.

Additionally, authorities noted that both factions received commissions in crypto, complicating efforts to trace profits and assess the true extent of the group’s laundering endeavors.

Authorities seized €183,000 in crypto (around $205,000), €206,000 in cash (about $230,700), and €421,000 across 77 bank accounts (about $471,500). Furthermore, they shut down more than 10 real estate holdings valued over €2.5 million (about $2.8 million).

Other confiscated items include 18 vehicles, 4 shotguns, and numerous encrypted devices. This does not include luxury goods such as cigars worth over €622,000 (around $696,600), handbags exceeding €230,000 (about $257,600), and high-end watches and wines.

Interestingly, the group marketed its alternative banking services on social media, masquerading as a legitimate remittance provider.

Authorities have noted 32 money transfers conducted by the group over the past three months, amounting to over €5.5 million. A single wallet reportedly served as a transfer hub managing over €21 million ($23.5 million) from 2022 until late 2023.

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Europe’s Increasing Crypto Laundering Concern

In recent years, Spain has experienced several prominent cases involving fraud, mismanagement of seized digital assets, and crypto laundering stemming from cybercrime and drug trafficking proceeds.

This latest investigation is part of a wider crackdown on crypto-related crime by European authorities and follows other notable incidents, such as the Marbella scandal from earlier this month where a court clerk allegedly siphoned €19 million in seized digital assets. Additionally, European officials have also targeted eXch, a former crypto exchange that operated without requiring Know Your Customer (KYC) verifications, which was involved in laundering illicit funds.

While Spanish authorities have not disclosed the identities of those arrested, they have highlighted that the sophistication and reach of the group’s protocol render it one of the most advanced money laundering operations encountered in Europe thus far.

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