An international, multi-member criminal organization operating cryptocurrency investment fraud schemes has been dismantled by the Hellenic Police (ELAS), specifically by the Organized Crime Unit of Crete. The members are alleged to have operated systematically since at least 2019, extracting millions of euros from their victims.
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Police announcement on criminal organization bust
Specifically, as announced by the Hellenic Police, the organization operated through seemingly legitimate corporate structures and online platforms, misleading citizens with false assurances of safe and high investment returns, while its activities extended beyond borders through connections and financial flows to foreign countries.
On the morning of March 5, 2026, a coordinated police operation was conducted in Crete, Attica and Igoumenitsa, during which 12 individuals were arrested, members of the organization. The case file includes another 6 persons, two of whom are also considered members. They face charges for criminal organization, aggravated fraud, money laundering from criminal activities, illegal provision of cryptocurrency services, concealment of assets and weapons law violations.
Pyramid scheme and fake investments
According to police, the investigation began following proper utilization of information and evidence collection, which was presented to the competent prosecutorial authority and a preliminary investigation was ordered. As emerged from the months-long police investigation, the criminal organization had developed a pyramid operating system (Ponzi scheme), through which money paid by new “investors” was used to pay fictitious returns to older ones, creating a false image of sustainability and profitability.
To achieve their purpose, organization members exploited victims’ limited knowledge about cryptocurrencies, presenting digital assets (tokens) that had no real exchange value or utility outside the controlled ecosystem of the issuing companies, as supposedly reliable investment options.
They also used virtual electronic wallets, locked balances and controlled cryptocurrency exchanges to hide the actual flow of money. Regarding its structure, as emphasized in the announcement, the criminal organization was characterized by a strict hierarchical structure with distinct roles among its members.
Specifically, the leadership core consisted of 4 individuals. These leading members determined action strategy, coordinated operational staff and organized presentations, online seminars and events promoting fraudulent investment schemes. In fact, for this purpose, they had also developed a 90-day training program, where members were trained in “academies”. Three senior executives were responsible for recruiting victims, participated in event presentations and speeches, provided illegal investment advice and promoted new “investment packages”.
Seven operational members were active in directly seeking and attracting victims through personal and professional networks, while remaining support members provided facilities for finding new investors to earn commissions.
In the scheme they created, they held corresponding titles among 21 different levels, such as “ambassador”, “leader”, “founder’s council”, while earning income/rewards (referral, bonus) from attracting new member participation. Notably, they also proceeded to draft and sign Private Confidentiality Agreements.
Regarding persuasion methods, organization members systematically made false promises of high and guaranteed returns with minimal or zero risk, assuring victims they could liquidate their capital at any time. They presented themselves as successful investors and “leaders” of groups, showcasing luxurious lifestyles through social media with posts of travels, luxury vehicles and events.
They also created a sense of “unique opportunity” with artificial time constraints, so victims would make hasty decisions without credibility checks. Additionally, they organized online and live seminars, provided illegal investment advice without certification, created closed communication groups in messaging apps to cultivate false sense of reliability, and in cases of platform collapse, promoted new schemes with different commercial names (rebranding), transferring victims to new supposed investment opportunities.
Within the financial investigation conducted, after issuing European Investigation Orders to France, Germany and Malta, as well as Mutual Legal Assistance to United Kingdom, Ireland and Denmark, it was found that the total illegal financial benefit of the criminal organization exceeds €14.5 million.
Specifically, it emerged that organization members used the financial system methodically to hide the origin of their illegal income, transferring capital to foreign accounts, making expenses through third parties and investing part of the amounts in cryptocurrencies. To legitimize their illegal income, it was found in cooperation with the National Authority for Combating Money Laundering from Criminal Activities, that two organization members are connected to 4 offshore companies in Bulgaria.
Characteristically, cases emerged of persons who, while declaring themselves unemployed, homeless or having zero income, handled significant amounts of money, as well as a case of an involved person who had been declared bankrupt while concealing assets. Additionally, numerous trips by members abroad were identified for organizing and participating in events promoting fraudulent schemes, displaying luxurious lifestyles to enhance their credibility. During the investigation period, 73 victims were identified who had invested money in fraudulent investment schemes, with total financial damage amounting to at least €760,900.
The operation involved officers from the Organized Crime Unit of Crete, with assistance from services of the Organized Crime Directorate, local Police Directorates of Rethymno, Heraklion and Thesprotia, specialized staff from the Digital Criminological Research and Analysis Subdivision of the Criminological Research Directorate, as well as a team from the Capital Market Committee, the competent authority for supervising cryptocurrency businesses.
In the on-site investigation conducted by a specialized team from the Digital Criminological Research and Analysis Subdivision, digital evidence (electronic wallets and other data) revealed cryptocurrency transactions exceeding $2,000,000 at current value. Important contracts were also found between organization members and corporate schemes for legitimizing their illegal income.
Furthermore, at appropriate stages of the investigation, the contribution of a competent team from the Cybercrime Prosecution Directorate was crucial in conducting digital technical research and cryptocurrency flow analysis.
What authorities found
From police searches conducted in homes and business premises, the following were found and confiscated:
- €37,210 in cash,
- 4,000 Albanian Lek,
- 4 luxury vehicles,
- military rifle with magazine and 67 military rifle cartridges,
- 2 pistols,
- 2 hunting weapons,
- 57 cartridges,
- mining equipment,
- numerous digital evidence (USB drives, hard disks, phone data, etc.),
- numerous documents confirming the criminal organization’s activities,
- transaction receipts from cryptocurrency platforms,
- handwritten notes and diaries confirming payments from victims to organization members,
- platform credential cards and
- documents related to offshore companies.
As noted by police, the National Authority for Combating Money Laundering from Criminal Activities was informed regarding actions to locate bank accounts in financial institutions in Greece and abroad, as well as digital wallets, securities, financial products, safe deposit boxes and offshore companies, aimed at prohibiting movement, transfer or disposal of related capital or assets.
Confiscated money will be sent to the Deposits and Loans Fund, while confiscated digital evidence and weapons will be sent to the Criminological Research Directorate for laboratory examination. The arrested individuals are being brought before competent prosecutorial authorities.
