The Austrians exposed a cryptocurrency fraud, Czech Republic is among the detainees

According to a report by the Austrian Federal Criminal Office (BKA), the damage caused by the group is estimated at six million euros (CZK 150 million). Between December 2017 and February 2018, the six suspects offered a new cryptocurrency called LoopX, promising up to ten percent returns per week.

Hundreds of people from around the world invested in the cryptocurrency, but the group deleted its website after receiving payments and disappeared with the victims’ money. The group operated mainly from Austria, but traces also led to Germany, the Czech Republic, Thailand and Cyprus.

After years of investigation, an EU European Arrest Warrant was issued against the group in cooperation with the European judicial body Eurojust. Last October, the authorities detained two Austrian citizens – one in their homeland and the other in Cyprus. This was followed by the detention of one Czech citizen in Prague, and three other Austrians later ended up in a cell.

“It is a prime example of how consistently international cooperation can be used against criminals even in conditions of supposed anonymity on the Internet,” said BKA head Andreas Holzer. During the raids, the police confiscated approximately 750 thousand euros (18.8 million CZK) in various currencies, two sports cars and other property worth almost 1.5 million euros (37.6 million CZK). The charges are now awaiting trial.