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Dubai-Controlled Crypto-Based Underground Banking Scheme Dismantled with €27M in Crypto Seized!

Dubai-controlled underground banking scheme based on crypto
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In a law enforcement operation spanning six countries, Europol and law enforcement agencies dismantled an underground banking network linked to drug trafficking and organized crime. The multi-year investigation resulted in nine arrests, the seizure of luxury assets, and an unprecedented €27 million in cryptocurrencies, marking a milestone in the fight against financial crimes in the digital age.


Key Points:

  1. Massive Crypto Seizure: €27 million in cryptocurrencies and €35,000 in cash seized, demonstrating the integration of digital assets in illicit money laundering schemes.
  2. High-Profile Arrests: Nine suspects apprehended, including a British national coordinating financial operations for a network tied to Dubai-based criminal leaders.
  3. Public-Private Partnerships: The collaboration with cryptocurrency providers and stablecoin issuers played a pivotal role in the operation’s success.
  4. Cross-Border Operations: Law enforcement agencies from six nations worked together, with Europol leading intelligence sharing and operational planning.
  5. Digital Innovation in Crime: Criminals used cryptocurrencies and underground banking to conceal illicit funds, revealing the evolving complexity of financial crimes.

Short Narrative:

Europol’s multi-year investigation, encompassing Operations GORGON and WHITEWALL, culminated in a significant crackdown on underground banking networks facilitating organized crime. These networks provided “crime as a service” to high-value criminal clients, enabling the laundering of vast sums through cryptocurrencies and traditional financial systems.

Key evidence included handwritten notes found during a 2021 cocaine trafficking investigation, which identified a British national offering underground banking services to a southern Spain-based criminal network. Leveraging cross-referenced intelligence from the EncroChat and Sky ECC cases, Europol and its global partners exposed a web of criminal financial operations controlled from the UAE, dismantling one of Europe’s most sophisticated money laundering enterprises.


Actionable Insight:

  • For Regulators: Intensify oversight of cryptocurrency exchanges and stablecoin issuers to deter misuse in money laundering.
  • For Financial Institutions: Strengthen KYC/AML protocols to detect and prevent underground banking operations.
  • For Crypto Industry Leaders: Bolster public-private partnerships to tackle the illicit use of digital assets.

Call for Information:

FinTelegram seeks whistleblowers with information about underground banking networks and crypto-enabled money laundering. Submit your tips securely to Whistle42.com and help expose financial crime in the digital economy. Transparency starts with you.

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