Italian police dismantle €68M crypto laundering ring tied to mafia

Italian authorities uncovered a crypto money-laundering network connected to organized crime that shifted €68 million ($76 million) abroad, using a car rental business in Milan as a front.

The operation, conducted by the Guardia di Finanza and Monza Brianza, resulted in 30 arrests and spans Italy, Spain, and Switzerland, as reported by Il Sole 24 Ore.

The scheme purportedly gathered money from narcotics trafficking, cryptocurrency fraud, false invoices, and regular bank accounts, then pooled it and transferred it to banks in Europe.

Subsequently, the money was converted via cryptocurrency exchanges and sent to wallets under the suspects' control.

A car rental firm in Milan, operated by individuals linked to the Ndrangheta and Camorra mafia organizations, was said to be key to the scheme. The suspects are accused of using their earnings to aid mafia members behind bars.

The so-called “Fourth Mafia,” one of Italy's newer crime groups, also had members allegedly participating.

Shell companies created fake invoices

A variety of shell firms issued €110 million ($123 million) in false invoices for businesses that never received actual services, using them to launder money prior to conversion into cryptocurrency.

The operation drew in cryptocurrency scammers, drug dealers, and tax evaders seeking to clean their money, and authorities aim to seize €21 million ($23.5 million).

Also arrested were two people: a driver from the Milan magistrates' office and a lawyer practicing in Milan.

Last week, Bank of America received a $1.2 billion penalty for missing $5 billion in suspicious activity, including money linked to Chinese laundering operations.

This month, American Express was also fined $350 million over accusations of processing billions in trade-based money laundering.