Italy cracks down on cryptocurrency money laundering networks, suspected of transferring 68 million euros abroad

According to Bloomberg, the Milan prosecutor's office stated that Italian authorities are conducting arrest operations against 30 individuals suspected of operating a mafia-linked underground bank. This network is alleged to have transferred approximately 68 million euros abroad and used cryptocurrency to launder illegal funds.

The operation extends to Spain, where local police are executing European arrest warrants, and Swiss authorities are also seeking to apprehend another suspect. The prosecutor's office claims that the network is based around a car rental company near Milan, using shell companies to issue false service invoices, helping involved businesses in construction, logistics, and other industries reduce taxable income. After companies made payments via bank transfers, the network deducted commissions and returned the funds in cash.

Funds in the shell company accounts were transferred to banks in Luxembourg, Lithuania, and Germany, and then entered digital wallets allegedly controlled by the organization through cryptocurrency exchanges. Investigators identified over 110 million euros in false invoices and found that the network also handled drug trafficking proceeds and funds from victims of online cryptocurrency investment scams.