Italy cracks down on crypto money laundering network, suspected of transferring €68 million abroad

BlockBeats news, October 21 - According to Bloomberg, Milan prosecutors stated that Italian authorities are carrying out arrests of 30 individuals suspected of operating a mafia-linked underground bank. The network is suspected of transferring approximately €68 million abroad and using cryptocurrency to launder illicit funds. The operation extends to Spain, where local police are executing European arrest warrants, and Swiss authorities are also seeking to detain another suspect.

Prosecutors said the network was based at a car rental company near Milan and used shell companies to issue fake service invoices, helping involved companies in the construction, logistics, and other industries reduce taxable income. After companies paid via bank transfer, the network deducted commissions and returned the funds in cash.

Funds in the shell company accounts were transferred to banks in Luxembourg, Lithuania, and Germany, and then moved through crypto exchanges into digital wallets suspected of being controlled by the organization. Investigators identified over €110 million in fake invoices and found that the network also handled proceeds from drug trafficking and funds defrauded from victims of online crypto investment scams.