Spanish police, supported by Europol and international agencies, have arrested five people linked to a massive cryptocurrency investment scam that defrauded over 5,000 individuals. The criminal network reportedly stole more than €460 million ($541 million), making it one of the largest crypto fraud cases in Spain’s history.

The arrests took place last week, with three suspects caught in the Canary Islands and two more in Madrid. The operation involved law enforcement agencies from the United States, France, and Estonia. Authorities say the group used a sophisticated web of global associates to launder funds through cash withdrawals, bank wires, and crypto transactions.

Investigators believe the scammers built a shadow financial system by creating corporate and banking structures in Hong Kong. These were allegedly used to route the stolen money through multiple exchanges and user accounts under false names to obscure its origin.

Earlier this year, Spanish authorities froze over $26 million in digital assets tied to money laundering activities. The recent arrests mark a significant escalation in Europe’s crackdown on crypto fraud.

Globally, governments are intensifying their efforts to fight cryptocurrency-related crime. On June 18, the U.S. Department of Justice seized $225 million linked to online pig butchering scams — a method where fraudsters build trust with victims before manipulating them into investing larger amounts. The same month, five individuals also pleaded guilty in a $37 million crypto scam involving money funneled to Cambodia.

These developments highlight growing international cooperation in tackling crypto crime and reinforce warnings for investors to remain vigilant in a volatile and largely unregulated market.