European law enforcement made headline news in India after arresting 17 suspects allegedly operating a “mafia crypto bank” accused of laundering over 21 million euros ($23.5 million) in cryptocurrencies for criminal entities in China and the Middle East. According to a statement released by Europol on May 14, the money laundering services were provided to criminal networks involved in migrant smuggling and drug trafficking. Spanish authorities revealed that the criminal organization utilized a secret informal money transfer system known as hawala and often received compensation in cryptocurrencies. The arrests were carried out in Spain, Austria, and Belgium, resulting in the seizure of 4.5 million euros ($5 million) worth of assets, including cash, cryptocurrencies, vehicles, firearms, and electronic devices. Notably, 183,000 euros ($205,000) in crypto and 421,000 euros ($471,000) in cash from 77 bank accounts linked to the criminal organization were confiscated. Luxury items such as bags, watches, and cigars worth 876,000 euros ($980,000) were also seized. Europol reported that most of the detained individuals, primarily of Chinese and Syrian nationality, have already been imprisoned, with authorities highlighting their focus on clients in China and the Arabic-speaking criminal world. The investigation was led by a court in Almería, Spain, in collaboration with Europol and Belgian officials to dismantle the criminal network. It was revealed that the organization attempted to disguise its money laundering activities through a remittance business, even promoting its services on social media. Blockchain forensics firm Chainalysis estimated that illicit crypto transactions reached $51.3 billion in 2024, showing an 11.3% year-on-year rise. The crackdown on the “mafia crypto bank” underscores the ongoing battle against financial crime in the digital asset space, reflecting the increasing challenges posed by sophisticated criminal networks in the crypto sector.