December 2022 was eventful not just for the prosecutor's office for the Southern District of NY. The EU joined the cause of fighting crypto pumping scams, with local law enforcement arresting criminals who were cheating investors since 2020.
Two years ago, the case was opened at Eurojust at the request of the Italian authorities. The prosecutor's office and carabinieri of Pisa, as well as representatives of the state and criminal police, and Albania's special prosecutor's office for combating corruption and organized crime, all played active roles in the large-scale investigation. Italy and Albania formed a joint investigation team with the agency's assistance and were able to track down crypto scammers.
An online investment scheme was launched in Tirana. A local call center served as a front for members of an organized crime gang. They used untraceable virtual phone numbers and VPN services to remain anonymous.
The scam was divided into several stages. Scammers initially called potential investors on behalf of online trading platforms, convincing them to register, invest small amounts and receive immediate financial gains. Following this consultation, "authoritative brokers" who were allegedly working with exchanges entered the fray. They encouraged their victims to invest in cryptocurrencies with zero risk.
During the next stage of the scam, the perpetrators used remote computer control software to gain access to the investor's personal home banking pages. They urged the victims to transfer all of their savings to the account in order to maximize their profits. After the funds were transferred, the scammers canceled the accounts, transferred the funds to their own accounts, and vanished.
The victims that uncovered the scammers were contacted by other group members. They had to persuade the victims to make additional payments in order to recover their capital. The scammers managed to obtain €15 million.
Massive searches and the seizure of high-value items, including 11 properties, computers, servers, and digital video recorders, marked the end of the investigation, which was opened back in 2020. The main suspects are currently being held in custody.
