Six individuals have been arrested in connection with an Austrian cryptocurrency fraud scheme, resulting in the freezing of €2 million worth of assets. The operation was a joint effort between authorities in Austria, Cyprus, and the Czech Republic, with support from Eurojust and Europol. The scam involved the sale of rights or tokens for a supposed new cryptocurrency, with the fraudsters posing as operators of a legitimate online trading company. They accepted payments in established cryptocurrencies such as Bitcoin and Ethereum, claiming to have developed their own software and algorithm for token sales. However, in February 2018, they abruptly closed all their social media accounts and took down their website, deceiving investors and resulting in estimated losses of €6 million. The operation against the scam was facilitated by Eurojust’s coordination center, enabling the swift execution of arrest and search warrants. In a separate incident, Instagram influencer Jebara Igbara, also known as “Jay Mazini,” has been sentenced to seven years in prison for orchestrating a multi-million dollar crypto Ponzi scheme. The investigation into crypto fraud continues, with recent action taken against an alleged crypto investment fraud operating on the Gold Coast. The first quarter of this year has seen $336 million lost to Web3 hackers and fraud.
