🌎 Major Crypto Fraud Trial Opens in France with €28M at Stake

This week, a major crypto fraud trial involving over €28 million ($30 million) in stolen funds opened in Nancy, France. The trial is expected to last a month.

More than 20 defendants are implicated in a scheme targeting football clubs and individual investors, according to local reporting.

Fake Investments in Diamonds and Cryptocurrency

The bulk of the case centers around fake investments in diamonds and cryptocurrency, with victims including prominent football clubs such as Sochaux, Angers, and Toulouse. The trial, which had to be moved to a conference center due to the large number of plaintiffs, has been dubbed “red card” because of the involvement of football clubs.

Details of the Crypto Fraud

Between 2016 and 2018, the accused allegedly orchestrated a crypto fraud operation, using fake websites and promises of high returns to lure over 1,300 individuals. Some victims invested large portions of their savings, with one person reportedly losing €400,000 in a so-called “diamond savings plan.”

The scam also extended to football clubs, where the fraudsters posed as agents representing players and convinced the clubs to send salaries to new accounts controlled by the criminals. In total, the clubs were defrauded of about €60,000 ($64,800).

Proceedings and Recovery Efforts

About 850 of the victims are represented in the proceedings, which are expected to last four weeks. The fraudsters are accused of opening 199 bank accounts across 19 countries to launder the stolen funds, complicating efforts to recover the money.

So far, authorities have recovered €2.8 million, which may be used to compensate some of the victims.

Organized Network and Charges

Prosecutors argue that the defendants were part of an organized network operating out of Israel, targeting elderly and vulnerable individuals. The charges include criminal conspiracy and fraud committed in a gang, with some defendants accused of creating the fake websites while others helped funnel the stolen funds through various accounts.