Italy cracks down on crypto money laundering network, suspects involved in transferring 68 million euros abroad.

According to Bloomberg, Milan prosecutors said Italian authorities are carrying out arrest operations against 30 individuals suspected of running a mafia-linked underground banking network. The network is alleged to have transferred around €68 million overseas and laundered illegal funds using cryptocurrency. The operation extends to Spain, where local police are executing a European arrest warrant, while Swiss authorities are seeking to apprehend another suspect. Prosecutors stated the network was based at a car rental company near Milan, issuing fake service invoices via shell companies to help businesses in sectors like construction and logistics reduce their taxable income. After the companies made payments via bank transfers, the network deducted commissions and returned funds in cash. Funds in the shell company accounts were transferred to banks in Luxembourg, Lithuania and Germany, then moved through crypto exchanges to digital wallets allegedly controlled by the organization. Investigators identified over €110 million in fake invoices, and found the network also processed proceeds from drug trafficking and funds defrauded from victims of online crypto investment scams.