What happened

A coordinated European law-enforcement operation has dismantled a criminal network that used fake online investment platforms and deepfake video ads of celebrities, politicians and media figures to trick thousands of people into sending over EUR 700 million into bogus crypto schemes across multiple countries. 

The scam ran for years, using targeted social media adverts and call-centre pressure tactics, with victims’ funds laundered through layers of cryptocurrency exchanges and bank accounts in Europe and beyond. 

The network operated numerous fake cryptocurrency and trading sites that promised unusually high returns, then displayed fabricated account dashboards to convince victims they were making profits and should invest more. 

Once money was transferred, it was rapidly moved through crypto wallets, mixers and bank accounts to obscure the trail, with investigators estimating more than EUR 700 million was laundered in this way. 

The incident resulted in widespread financial losses, emotional distress, and in some cases victims taking on debt or draining savings. 

The harms were not only financial: people reported being harassed by aggressive boiler-room “brokers,” pressured to invest more, and left without recourse once the platforms disappeared. 

In late 2025, Europol and Eurojust coordinated raids in Cyprus, Germany, Spain, Belgium, Bulgaria and Israel, arresting at least nine suspects and seizing cash, crypto, bank funds, devices and luxury goods linked to the operation.

Why it happened

The scam thrived due to weak transparency and accountability in both AI-generated content and online advertising systems. Social media platforms failed to detect or label deepfake material reliably, allowing highly realistic synthetic videos to circulate widely. 

Lax advertiser verification processes made it easy for malicious actors to run large ad campaigns under false identities, and the opaque nature of AI-driven ad-targeting amplified the reach of the scam by focusing on vulnerable demographics. 

Meantime, the fraudulent trading platforms themselves operated with minimal oversight, often registered in opaque jurisdictions. 

Limited public understanding of deepfake technology further reduced users’ ability to spot manipulation.