Spanish law enforcement has dismantled a sprawling underground financial network that allegedly laundered more than €20 million through crypto transactions for organized crime groups based in China and the Arab world, local media reported on May 14.
The criminal ring, which police described as one of the largest clandestine crypto-banking operations uncovered in Europe, operated a shadow financial system designed to evade regulatory oversight while facilitating money movement for a range of illicit activities, including drug trafficking, human smuggling, and financial fraud.
The National Police, in cooperation with Europol and Eurojust, carried out simultaneous raids in January at 13 properties across six Spanish provinces and one location in Antwerp, Belgium.
Authorities arrested 17 individuals believed to be core members of the network, with 15 now held in pretrial detention. All face charges of money laundering and membership in a criminal organization.
Details of the operation were only made public this week following months of forensic analysis and cross-border coordination.
Parallel operations across two continents
The investigation revealed that the organization functioned through two main factions, led by Arabs and Chinese nationals.
The Arab faction specialized in receiving international transfers into Spain, while the Chinese network, operating mainly from Almeria and Madrid, collected large amounts of cash domestically. The money was then funneled abroad through complex crypto transactions that bypassed traditional banking systems.
To avoid detection, the group disguised its services as a legitimate remittance business and promoted them on social media platforms to reach a wide array of clients. Cash was physically transported across Spain using modified vehicles with hidden compartments, a tactic authorities said mimicked drug-trafficking methods.
Police said both factions earned commissions in crypto, making it difficult to trace profits and uncover the full scale of the laundering activity.
Authorities confiscated more than €205,000 in cash, €183,000 worth of digital assets, 18 luxury vehicles valued over €200,000, and 10 properties totaling more than €2.5 million in estimated value.
Investigators also seized encrypted devices, designer handbags worth €230,000, and a stockpile of premium cigars worth over €620,000, all believed to have been purchased with illicit funds.
Rising crypto-related crime
The investigation was led by a court in Almeria and supported by Europol’s European Financial and Economic Crime Centre. Eurojust facilitated judicial coordination between Spanish and Belgian authorities, highlighting the increasing role of international cooperation in combating cyber-enabled financial crime.
Spain has emerged as a hotbed for crypto-related financial crime in recent years, with several high-profile cases involving fraud, misappropriation of seized digital assets, and the use of crypto to launder proceeds from narcotics and cybercrime.
The latest case follows a series of investigations, including a separate Marbella scandal earlier this month in which a court clerk allegedly embezzled €19 million in seized digital assets. Additionally, authorities recently raided eXch in Germany, which was also involved in laundering illicit funds.
The case highlights the ongoing challenges governments face in tracking cross-border digital assets, especially when criminal networks use crypto as a primary settlement layer for illegal activities.
While Spanish officials did not disclose the names of those arrested, they noted that the network’s sophistication and geographic reach place it among the most advanced money laundering operations they have encountered in Europe to date.
The probe remains open, with authorities continuing to analyze digital evidence and financial records to identify additional collaborators and clients of the illicit crypto bank.
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