Europol Dismantles €460M Crypto Fraud Network in Operation Borrelli

Europol has announced the takedown of a transnational cryptocurrency investment fraud network that laundered approximately €460 million ($540 million) from over 5,000 global victims. The effort, dubbed Operation Borrelli, was coordinated by Spanish law enforcement (Guardia Civil) in partnership with authorities from Estonia, France, and the United States. The investigation began in 2023 and culminated in the arrest of five individuals on June 25, 2025.

How the Scam Worked

The criminal operation relied on a deceptive method known as cryptocurrency confidence scams or romance baiting, formerly referred to as “pig butchering.” In these schemes, scammers build trust with targets through social interactions—often on dating apps or messaging platforms—before enticing them to invest in fraudulent crypto platforms.

Victims were led to believe they were making real investments via convincing fake dashboards, trading apps, or broker interfaces. Meanwhile, the attackers used social engineering techniques and scripted chats to maintain the illusion. Once funds were deposited, they were swiftly transferred through layers of accounts and crypto wallets—a laundering process known as layering—to obscure their origin.

Financial Infrastructure and Global Reach

According to Europol, the scam’s operators managed a network of shell companies and banking infrastructure in Hong Kong, channeling illicit profits through payment gateways and exchanges registered under fabricated or synthetic identities.

The suspects were captured in Madrid and the Canary Islands. They allegedly coordinated with a broader international network of associates who handled cash withdrawals, bank transfers, and cryptocurrency movements.

Human Exploitation and Forced Labor

A darker dimension of these operations has been revealed in related investigations. Many scam centers in Southeast Asia—particularly in Cambodia—operate under the guise of legitimate businesses but are in fact human trafficking hubs. Victims, often from Asia and Africa, are lured with promises of high-paying tech or sales jobs, only to be forced into scam labor under harsh conditions. Amnesty International has identified 53 such compounds in Cambodia alone, citing evidence of torture, slavery, and forced labor.

A Growing Global Threat

This case is just one example of a broader trend. The U.S. Department of Justice recently filed a forfeiture complaint to recover over $225 million tied to similar schemes operating out of Vietnam and the Philippines. INTERPOL and the United Nations Office on Drugs and Crime (UNODC) have also raised alarms about the integration of AI by cybercrime syndicates to scale fraud efforts and evade detection.

Social media and encrypted platforms like Telegram and Facebook are increasingly being used to rent bank accounts, advertise scam tools, and recruit unwitting financial mules. Meta has reported removing over seven million Facebook accounts linked to scam operations in Asia and the Middle East this year alone.

Ongoing Risks and Challenges

The scale and complexity of these crimes highlight the difficulty of international coordination and enforcement. Cybercrime now accounts for over 30% of all reported crimes in some regions, and experts warn that outdated legal frameworks are ill-equipped to address the evolving threat landscape.

As global law enforcement agencies work to catch up, public awareness and strong cybersecurity hygiene remain critical to protecting individuals from falling victim to these elaborate scams.