Greek soldiers accused of involvement in $8 million crypto scam

Members of the Greek military are facing interrogations on Monday as part of an investigation into a major crypto investment scam in their country.

Law enforcement authorities in Greece are still trying to unravel the structure of the criminal organization in which the soldiers were allegedly involved.

Crypto investment scheme defrauds 10,000 investors in Greece

Key suspects in the crypto fraud case, nine individuals, are due to appear before an investigating magistrate at the start of the week, Greek media reported.

Among them are two military personnel believed to have played leadership roles in the pyramid-like scheme, according to the online edition of the weekly To Vima.

In an article published Monday morning, the newspaper reminded that Greek police have so far detained 17 people accused of involvement in the group behind it.

Prosecutors say they persuaded investors to put money into cryptocurrencies through a dedicated platform under their control, with promises of high and quick returns.

Sources familiar with the ongoing investigation claim that around 10,000 victims have been defrauded this way, with the minimum individual amounts starting at €800 (almost $900).

And those who spend at least €5,000 (approximately $5,600) were granted VIP investor status. They were supposed to see their money double within weeks, which never happened.

The creators of the fake investment scheme have made an estimated $8 million, To Vima wrote. Other Greek news outlets put their gains at €8 million, which is nearly $9 million.

The probe was launched in July by the Directorate for Crime Investigation in Katerini after receiving two anonymous complaints through the portal for digital government services gov.gr.

According to law enforcement officials, the crypto pyramid had at least 1,842 members in the northern Greek city alone, with €2 million invested there before it was discovered.

Greek servicemen face questioning over alleged roles in the scam

Investors have already spoken with seven of the arrested persons, including military personnel of different ranks. Six have been released on bail, ranging between €15,000 and €20,000, ERT revealed.

A 44-year-old man, resident of Katerini, who is considered to be one of the key figures in the crime group, was remanded in custody, the Newsbomb.gr website relayed, quoting the public broadcaster.

He worked as a team leader in the capital city of the regional administrative unit of Pieria, which hosted the largest branch of the project called “Association of Artificial Intelligence Friends.” The latter promised significant profits from AI-powered cryptocurrency trading.

Investors were initially allowed access to their balances during the first 50 days of depositing. Then, on Sept. 1, withdrawals were suddenly suspended with the explanation that the platform was changing its investment strategy, the Greek press explained ahead of the weekend.

The nine high-ranking members of the criminal group answering questions on Monday include one serviceman from Pieria and another from Larissa, the largest city of the Thessaly region, who is the alleged mastermind.

Investigators have found that the two travelled abroad together to acquire the know-how needed to establish the cryptocurrency scheme from a third person, who is yet to be identified.

Judicial authorities in Greece are now looking into how the sums were collected, what was the route of the money as well as the roles of the individual participant in the now dismantled crypto fraud ring.

It’s already known that part of the proceeds were transferred via digital banks abroad or converted into cryptocurrency and deposited in digital wallets controlled by the fraudsters.

Most of the perpetrators of the crime were arrested during a special operation on September 30. Searches were conducted in offices and homes in several Greek cities.

Police have seized more than €295,000 and bank cards, dozens of mobile phones, computers and storage drives, as well as many documents, notes and other material evidence.

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