Italian police arrest 30 over alleged mafia 'secret bank' that moved money via crypto
In brief
- Italian police arrested 30 people over an alleged underground bank run from a car-rental firm near Milan.
- Authorities seized €21 million (about $23.6 million), including cash, cryptocurrency, boats, jewelry and luxury watches.
- Prosecutors allege the network moved about €68 million abroad.
- Funds were routed through crypto exchanges into network-controlled wallets, Bloomberg reported.
- A financial police inspector was placed under house arrest on corruption charges, LaC News24 reported.
Who allegedly ran the bank
The Guardia di Finanza (Italy's financial police) carried out the operation on the orders of Milan's anti-mafia prosecutors, targeting suspects linked to the 'Ndrangheta, the Camorra and organized crime groups from Foggia. Sixteen suspects were taken into custody. Fourteen more were placed under house arrest, a total that included two people arrested in Spain and one in Switzerland, Decrypt reported.
Investigators said three Italians ran the business in Pero, on the outskirts of Milan. Two were long-standing contacts of 'Ndrangheta clans from Crotone with earlier mafia convictions, and the third was a member of the Camorra's Casalesi clan. Prosecutors allege Chinese and Albanian accomplices helped operate the network.
How the money allegedly moved
Prosecutors allege shell companies issued more than €110 million in invoices for services that were never provided, which let businesses cut their tax bills. Those businesses paid by bank transfer and got the money back in cash (minus a commission). The network moved about €68 million abroad, according to prosecutors.
That's where crypto comes in.
According to Bloomberg's report, as cited by Decrypt, funds in the shell companies' accounts went to banks in Luxembourg, Lithuania and Germany before being routed through crypto exchanges into wallets the network controlled. Drug traffickers who handed over cash got crypto or international bank transfers in return, Bloomberg reported. It's not just drug money, either: the network also handled money stolen from victims of online crypto investment scams, per the same report.
Insiders caught up in the case
A Guardia di Finanza inspector was among those arrested and was placed under house arrest on corruption charges, LaC News24 reported. Investigators also accused a Milan court employee of leaking information about ongoing investigations, according to LaC News24. A lawyer and a former member of the financial police are among those caught up in the case, too.
The financial police's technology fraud unit supported the investigation, which is set out in a court order running to more than 500 pages.
Italian authorities have flagged this risk before. In 2021, Italy's Anti-Mafia Investigative Directorate said all criminal organizations, including mafia-type groups, had an interest in using crypto for their business. It described the 'Ndrangheta, Italy's most powerful criminal syndicate, as
growing more and more attuned to modern tools like cryptocurrency and the deep web.
Frequently asked questions
How did the alleged mafia bank in Milan use crypto?
According to Bloomberg, as cited by Decrypt, funds in shell companies' accounts were sent to banks in Luxembourg, Lithuania and Germany, then routed through crypto exchanges into wallets the network controlled. Drug traffickers who handed over cash received crypto or international bank transfers in return.
Who carried out the operation against the alleged underground bank?
The Guardia di Finanza, Italy's financial police, carried out the operation on the orders of Milan's anti-mafia prosecutors. Its technology fraud unit supported the investigation, which is set out in a court order of more than 500 pages.
