Polish authorities announced on Monday 19 October the dismantling of a money-laundering network accused of moving more than 337 million zlotys, roughly 80 million euros at current exchange rates, in proceeds from cryptocurrency scams. The operation led to nine arrests across several cities.
The network is alleged to have laundered funds originating from fake investment platforms and fraudulent cryptocurrency placement schemes. Rather than moving money directly, suspects are said to have routed it through currency exchange offices, known locally as kantors, and through gold purchases that existed only on paper, recorded on invoices for transactions that never physically took place.
The group is reported to have operated out of Warsaw, Lublin, Wrocław, Katowice and Gdańsk. Investigators describe a 34-year-old Ukrainian man as the leader, giving orders and deciding how cash was received and circulated both within Poland and abroad. Among the nine suspects are eight Ukrainian nationals, including three women, and one Belarusian woman.
Seven suspects have been placed in pre-trial detention: six for three months and one for two months. Two others were released on bail, subject to a travel ban and police supervision. All face charges that carry a maximum sentence of up to 15 years in prison.
Searches and seizures
Searches were carried out at homes, offices and currency exchange offices linked to the suspects. Investigators seized gold and cash worth more than 1 million zlotys, along with computers and phones that will be examined as part of the ongoing investigation. Converted into cryptocurrency terms, the 337 million zlotys allegedly laundered by the network is roughly equivalent to 1,100 bitcoins at Tuesday's exchange rate.
The case was led by the Border Guard of Warmia-Mazury, the region bordering Russia's Kaliningrad exclave, working alongside the Central Cybercrime Bureau of Łódź and the Internal Security Agency's branch in Gdańsk. There is some discrepancy between the two agencies' public statements: the Border Guard's account cites Warsaw as the site of arrests, while the Internal Security Agency's statement also references Łódź and the Lesser Poland Voivodeship. The investigation is being overseen by the Regional Prosecutor's Office of Łódź.
A wider pattern
The raid came five days after a European protocol was signed in Strasbourg extending freeze and confiscation powers to cryptocurrencies, part of a broader push across the bloc to give authorities more tools against crypto-enabled financial crime.
The announcement also follows a ruling on 15 October by the Court of Justice of the European Union, in a case originating from Poland, that requires banks to refund unauthorised transactions within one business day. Poland's Central Cybercrime Bureau has also been involved in the Zondacrypto case, which includes the September disappearance of the exchange's founder. Authorities have not disclosed the number or nationality of victims, nor released the names of the suspects.
