Poland: 337 million zlotys in crypto scams laundered through fake gold bars, nine arrests

Bars that never existed. On Monday, October 19, Poland announced the dismantling of a money laundering network. Border guards acted with the Internal Security Agency (ABW) and the Central Bureau of Cybercrime. The network laundered over 337 million zlotys, nearly 80 million euros at current rates. The money came from crypto scams: fake investment platforms and false cryptocurrency placements. Authorities arrested nine individuals, seven of whom are in provisional detention. The crackdown comes five days after the signing of the European protocol in Strasbourg. This text extends powers of freezing and confiscation to cryptocurrencies.

Key points of this article:

• Poland dismantled a money laundering network that laundered over 337 million zlotys through cryptocurrency scams and fake gold purchases.
• Nine individuals, mostly Ukrainians, were arrested, and the network operated in several Polish cities, using exchange offices to mask the origin of the funds.

Crypto laundering in Poland: exchange offices and paper gold

The mechanism consists of two steps. Victims believe they are investing on a trading platform or in a crypto product. They send their money. The network must then provide a presentable origin for it. It does this through exchange offices, which are present on every street corner in Poland. It also relies on gold purchases that existed only on invoices. A transaction involving a metal that no one delivers justifies a transfer, followed by another. The trace eventually disappears. In total, the border guards' statement estimates the transactions at over 337 million zlotys. This amount corresponds to the laundered volume, not the seized sums.

The group operated in Warsaw, Lublin, Wrocław, Katowice, and Gdańsk. A 34-year-old Ukrainian was the leader. He gave the orders. He also decided on the reception of cash and its circulation in Poland and abroad. Investigators identified eight Ukrainian nationals (including three women) and one Belarusian. Searches targeted residences, offices, and exchange offices. They seized gold and cash worth over one million zlotys. Investigators also took computers and phones. At the site of the arrests, the statements diverge slightly. The border guards mention Warsaw, while the ABW also cites Łódź and the Voivodeship of Lesser Poland. The regional prosecutor's office in Łódź is leading the investigation into this crypto laundering.

Nine suspects, up to 15 years in prison: what the network risks

The court placed six suspects in provisional detention for three months and a seventh for two months. The last two remain free on bail. They are prohibited from leaving the territory and are under police supervision. All face up to fifteen years in prison, according to the ABW. The authorities have not released any names. They did not provide the number of victims or their nationalities.

This case is a textbook example for European crypto investigators. The network laundered outside the blockchain, using gold and cash that on-chain analysts never see. The 337 million zlotys represent approximately 1,100 bitcoins at this Tuesday's rate. None of them needed to pass through a mixer. The border guards of Warmia-Masuria, at the border with Kaliningrad, conducted the operation. They worked with the CBZC of Łódź and the ABW branch in Gdańsk.

The dismantling comes four days after the ruling of the Court of Justice of the European Union on October 15. In a case also from Poland, the Court mandated banks to refund unauthorized transactions within one business day. Victims of crypto investment scams depend on what the police manage to seize. Here, one million zlotys out of 337. Readers following the Zondacrypto case and the disappearance of its founder will find the same Central Bureau of Cybercrime already at work in September.

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