Spanish law enforcement has recently cracked down on a massive underground financial network that laundered over €20 million through cryptocurrency transactions for organized crime groups in China and the Arab world. This operation was described as one of the largest clandestine crypto-banking operations in Europe, designed to evade regulatory oversight and facilitate illegal activities such as drug trafficking, human smuggling, and financial fraud.
In a joint effort between the National Police, Europol, and Eurojust, raids were conducted in January at 13 locations across Spain and one in Belgium. A total of 17 individuals were arrested, with 15 currently in pretrial detention facing charges of money laundering and membership in a criminal organization. The details of this operation were made public after months of forensic analysis and international cooperation.
The investigation revealed that the criminal ring operated through two main factions led by Arabs and Chinese nationals. The Arab faction focused on receiving international transfers into Spain, while the Chinese network collected cash domestically, which was then laundered through complex cryptocurrency transactions to bypass traditional banking systems. To avoid detection, the group disguised its services as a legitimate remittance business and used social media platforms to attract clients.
Both factions earned commissions in cryptocurrency, making it challenging to trace profits and uncover the full extent of the laundering activity. Authorities seized over €205,000 in cash, €183,000 worth of digital assets, 18 luxury vehicles, and 10 properties valued at over €2.5 million. They also confiscated encrypted devices, designer handbags, and premium cigars believed to have been purchased with illicit funds.
The investigation was led by a court in Almeria and supported by Europol’s European Financial and Economic Crime Centre, with Eurojust facilitating judicial coordination between Spanish and Belgian authorities. This case highlights the importance of international cooperation in combating cyber-enabled financial crime and the challenges governments face in tracking cross-border digital assets.
Spain has seen a rise in crypto-related financial crime in recent years, with several high-profile cases involving fraud, misappropriation of digital assets, and money laundering. This recent crackdown underscores the ongoing battle against illegal activities facilitated by cryptocurrencies and the need for enhanced regulatory measures to prevent such illicit practices.
As the probe continues, authorities are analyzing digital evidence and financial records to identify additional collaborators and clients of this underground crypto bank. The sophistication and reach of this network make it one of the most advanced money laundering operations encountered in Europe. The fight against crypto-related crime remains a top priority for law enforcement agencies worldwide as they strive to protect the integrity of the financial system and prevent criminal organizations from exploiting digital currencies for illicit purposes.