A Major International Money Laundering Scheme Using Cryptocurrency Uncovered in Georgia

In Georgia, 11 individuals have been detained for the illegal 'laundering' of large sums of money, according to a statement from the Ministry of Internal Affairs of Georgia.

Investigation revealed that in the spring of 2019, an Israeli citizen, along with accomplices, formed an organized criminal group that engaged in fraudulent misappropriation of funds belonging to foreign citizens through cryptocurrency trading for a long time. The obtained sums were distributed among the members of the criminal organization.

The organizers attracted specialists in foreign languages who systematically communicated with potential victims, offering them to purchase cryptocurrency via bank transfer. If an agreement was reached, the group members would remotely register the foreigner on their website, after which the visitor would acquire cryptocurrency in their name. However, the funds paid out would be reflected not in the accounts of the deceived customers but in those of the fraudsters.

In this manner, the members of the criminal group fraudulently stole large sums belonging to citizens of foreign states, including Germany, Austria, China, the Netherlands, and Norway. Currently, the estimated damage stands at 620,000 euros.

Some members of the organized criminal group used their illicit earnings to purchase luxury vehicles and real estate. These have also been seized.

The investigation was conducted by a joint team of the Main Directorate for the Fight Against Organized Crime of the Criminal Police of the Ministry of Internal Affairs of Georgia and the Chief Prosecutor's Office under several articles of the Georgia Criminal Code, including 'illegal acquisition and possession of personal data by an organized group, illegal misappropriation of large sums belonging to foreign citizens, as well as the legalization (laundering) of illicit income, especially on a large scale.' The crime carries a penalty of imprisonment for a term of 9 to 12 years.