HomeCryptoEurojust takes down Austrian-based fraud scheme promoting new cryptocurrency coin

Eurojust takes down Austrian-based fraud scheme promoting new cryptocurrency coin

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Authorities in Austria, Cyprus, and Czech Republic Crack Down on Online Crypto Scam

Authorities in Austria, Cyprus, and the Czech Republic have cracked down on a major online scam involving the sale of fake cryptocurrency tokens. In a coordinated effort supported by Eurojust and Europol, six main suspects have been arrested and assets totaling EUR 750,000, a property worth EUR 1.4 million, and two cars have been seized.

The scammers operated between December 2017 and February 2018, claiming to have launched a new cryptocurrency and offering 10 million tokens for sale. Investors were duped into paying with bitcoin or ethereum, believing they were investing in a legitimate online trading company. The fraudsters even went as far as creating their own software and algorithm to deceive investors.

However, in February 2018, the scammers abruptly shut down their social media accounts and website, leaving investors with losses totaling around EUR 6 million. Eurojust played a crucial role in supporting the operation against the scam, facilitating real-time communication between authorities and enabling the execution of European Arrest Warrants and search warrants.

Europol also provided assistance by organizing operational meetings and deploying specialists to Cyprus to support the investigation. The authorities involved in the operation included the Central Public Prosecutor’s Office for Combatting Economic Crimes and Corruption in Austria, the Cyprus Police, and the National Organised Crime Agency in the Czech Republic.

This crackdown serves as a warning to potential investors to exercise caution when dealing with cryptocurrency investments and to thoroughly research any company before making financial commitments. The swift action taken by authorities highlights the importance of international cooperation in combating online scams and protecting consumers from financial fraud.

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