Europol Dismantles $23M Cryptocurrency-Based Hawala Money Laundering Network Across Europe

Europol, working with law enforcement partners in multiple European countries, has dismantled a major transnational money laundering network that utilized cryptocurrencies through an illegal ’hawala’ banking system. The network laundered over $23 million, handling funds for drug trafficking and human smuggling by converting cash into cryptocurrencies and facilitating cross-border transfers to conceal the origins of illicit funds. Raids in Spain, Austria, and Belgium resulted in 17 arrests and the seizure of nearly $230,000 in cash, $205,000 in cryptocurrencies, 18 luxury vehicles, 10 properties worth $2.8 million, and luxury items. The organization operated with two main factions: Chinese members managing cash collection in Spain and Arab members deploying cryptocurrencies to modernize the traditional hawala system for international transfers. This operation underscores increasing regulatory scrutiny and enforcement against cryptocurrency-fueled money laundering in Europe and highlights the growing intersection of digital assets with organized financial crime. The move is expected to support ongoing regulatory efforts and may impact compliance standards and transaction transparency across the cryptocurrency sector.