Italian police have dismantled a mafia-linked crypto laundering ring that moved €68 million ($76 million) out of the country under the guise of a Milan-based car rental company, according to Il Sole 24 Ore.
The operation, conducted by the Guardia di Finanza and Monza Brianza, resulted in 30 arrests and spans Italy, Spain, and Switzerland.
Scheme Details
The scheme allegedly combined funds from drug trafficking, crypto scams, fraudulent invoices, and general bank accounts, then moved them into European banks. Crypto exchanges were used to convert the funds and send them to wallets controlled by the suspects.
A Milan-based car rental company, run by suspects with ties to the 'Ndrangheta and Camorra mafia groups, was reportedly central to the plot. These suspects are alleged to have used their profits to support mafia members in prison. Members of one of Italy's youngest mafia groups, the so-called "Fourth Mafia," were also reportedly involved.
Shell Companies and False Invoices
Various shell companies used €110 million ($123 million) worth of false invoices, generated for businesses that never involved contracted work, to launder the funds before they were converted into crypto.
The scheme attracted crypto scammers, drug traffickers, and tax evaders looking to launder their funds. Police are seeking seizures totaling €21 million ($23.5 million).
Two individuals, including a driver for the Milan magistrates office and a Milan-based lawyer, have also been arrested.
Recent Enforcement Actions
The bust follows recent enforcement actions against major financial institutions. Last week, Bank of America was fined $1.2 billion for failing to detect $5 billion worth of suspicious transactions, including funds linked to Chinese money laundering networks. American Express was also fined $350 million this month for allegedly processing billions of dollars in trade-based money laundering.
