Six Individuals Arrested in Austrian Crypto Fraud Scheme, Assets Worth €2M Frozen
A joint operation involving authorities from Austria, Cyprus, and the Czech Republic has led to the arrest of six individuals linked to a cryptocurrency scam. The operation resulted in the seizure and freezing of assets totaling €2M.
Authorities from three European countries have cracked down on a cryptocurrency fraud scheme, arresting six individuals and freezing €2M worth of assets.
Details of the Fraudulent Scheme
The fraudulent operation took place between December 2017 and February 2018. The scammers posed as a legitimate online trading company that had supposedly launched a new cryptocurrency. They offered 10 million tokens or rights to the new currency for sale, accepting payments in established cryptocurrencies such as Bitcoin and Ethereum. However, in February 2018, the fraudsters abruptly closed all their social media accounts and took down the company’s website, revealing the scam and resulting in investor losses estimated at around €6 million.
Role of Eurojust and Europol
Eurojust and Europol played crucial roles in supporting the operation against the online scam. Eurojust established a coordination center to facilitate real-time communication among the participating authorities, enabling the swift execution of European Arrest Warrants and search warrants. Europol contributed to the operation by deploying a mobile office in Cyprus and organizing operational meetings. They also worked closely with the Austrian desk at Eurojust to provide a comprehensive analysis of the investigation.
Instagram Influencer ‘Jay Mazini’ Sentenced in Separate Crypto Fraud Case
In a separate incident, Instagram influencer Jebara Igbara, known as ‘Jay Mazini,’ has been sentenced to seven years in prison for orchestrating a multi-million dollar crypto Ponzi scheme. The 28-year-old from New Jersey confessed to running a Ponzi scheme that involved cryptocurrency fraud and resulted in approximately $8 million in illicit gains.
Conclusion
The recent arrests and convictions underscore the ongoing efforts by global authorities to clamp down on cryptocurrency fraud. Investors are advised to exercise caution when dealing with cryptocurrency investments, particularly those promising high returns. As the crypto market continues to mature, it is hoped that such fraudulent activities will become less prevalent.
