Austrian Cybercrime Police Dismantle International Crypto Scam LoopX

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In a crackdown on crypto fraud, the Austrian Cybercrime Competence Center (C4) of the Federal Criminal Police Office, in coordination with the Public Prosecutor’s Office for Economic Affairs and Corruption (WKStA), has successfully dismantled an international scam operation known as LoopX. This extensive investigation culminated in the arrest of six individuals involved in a sophisticated “exit scam” that defrauded investors of several million euros.

Starting in December 2017, the suspects launched LoopX, offering the new cryptocurrency while promising lucrative weekly returns of up to ten percent. They aggressively marketed the tokens through social media platforms, engaging influencers and YouTubers to promote their scheme. Initially, the group managed to attract hundreds of investors worldwide by accepting payments in Bitcoin and Ethereum. However, by February 2018, just months after the launch, the suspects abruptly ceased operations and disappeared, rendering the LoopX tokens worthless.

The scam first came to light through reports filed in Switzerland, which prompted a chain of investigations across Austria and beyond. The C4 cybercrime experts meticulously traced and analyzed the complete transaction history associated with LoopX, which eventually extended investigations into Germany, the Czech Republic, Cyprus, and Thailand.

The coordinated effort, which involved Europol and the judicial cooperation of several countries, led to a series of arrests across Europe. In Linz, a 29-year-old Austrian was apprehended with the assistance of the Cobra task force, and another 38-year-old Austrian was detained in Cyprus. Additionally, arrests were made in Prague, Styria, and Upper Austria. The suspects, ranging in age from 29 to 40, are now awaiting trial.

During the operation, authorities seized assets, including €750,000 euros in various currencies, two sports cars, and a property valued at nearly 1.5 million euros. The financial damage the scam inflicted is estimated at around six million euros.

This case highlights the persistent risks and challenges in the digital asset landscape, serving as a stark reminder of the importance of rigorous due diligence and regulatory oversight in the rapidly evolving cryptocurrency sector. As the suspects prepare for their upcoming court proceedings, the crypto community remains vigilant against the backdrop of increasing cybercrime activities targeting digital currencies.

CategoriesCrypto Schemes

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