Italy cracks down on underground banking network linked to organized crime, involving approximately €68 million laundered via cryptocurrency.

On October 21, according to Bloomberg, Italian authorities are conducting arrests against 30 individuals suspected of operating an underground banking network linked to the Mafia. Milan prosecutors state that the network allegedly transferred approximately €68 million abroad and utilized cryptocurrency to launder illicit funds. The operation has simultaneously expanded to Spain, with Swiss authorities also seeking to apprehend another suspect.

Prosecutors noted that the network operated out of a car rental company near Milan, using shell companies to issue fraudulent service invoices to help implicated businesses in sectors such as construction and logistics reduce their taxable income. The associated funds were subsequently routed to bank accounts in Luxembourg, Lithuania, and Germany before moving into digital wallets allegedly controlled by the organization through cryptocurrency exchanges.

Investigators have identified over €110 million in fictitious invoices and discovered that the network also processed drug trafficking proceeds and funds defrauded from victims of online cryptocurrency investment scams.