US, China and UAE Shut 9 Crypto Scam Centers, Arrest 276

An international investigation involving the US, the United Arab Emirates and China has dismantled a large cryptocurrency fraud network.

Cointelegraph reported on April 30 that the US Department of Justice said a joint operation led by Dubai Police, with participation from the Federal Bureau of Investigation and China’s Ministry of Public Security, shut down at least nine crypto scam hubs and arrested 276 people. Of those arrested, 275 were taken into custody in Dubai, while one was separately arrested by the Royal Thai Police.

US authorities have charged six people in connection with the case with federal fraud and money-laundering offenses. If convicted, they face up to 20 years in prison and fines on each count.

Investigators said the suspects operated fake cryptocurrency investment platforms, lured victims and induced them to deposit funds. Losses are estimated to total millions of dollars.

Andrew Tysen Duva, deputy assistant attorney general at the US Department of Justice, said fraud is a cross-border crime and international cooperation is essential for law enforcement to eradicate it.

Similar crackdowns have also taken place in Europe. Europol said a joint investigation with Austrian and Albanian authorities uncovered a fraud ring in the Tirana area and led to 10 arrests. Investigators found the group operated with as many as 450 people and caused more than 50 million euros in losses to victims worldwide.