INTERPOL And AFRIPOL Dismantle $562 Million Cryptocurrency-Based Ponzi Scheme Funding Terrorism

New Delhi: In a major crackdown, INTERPOL and AFRIPOL have dismantled a massive cryptocurrency-based Ponzi scheme that defrauded investors across 17 countries of over $562 million. Following the crackdown, a shocking revelation surfaced suggesting that the funds were allegedly channelled into terrorism-related activities. 

The two-month operation against the humongous cryptocurrency-based Ponzi scheme, codenamed ‘Operation Catalyst’, targeted financial crimes linked to terrorism financing and money laundering across Africa. The multi-nation operation resulted in the arrest of 83 people linked to the fraud and the identification of over 160 persons of interest.

Direct Link Established Between The Ponzi Scheme And Terrorist Groups

The scheme, impersonating as a legitimate trading platform, exploited cryptocurrencies to facilitate fast and anonymous transactions, making it difficult to trace the money trail. 

The investigator teams unearthed a direct link between the Ponzi scheme and terrorist groups, including senior members of terrorist organisations in Nigeria, where 11 suspects were arrested.

After investigation, INTERPOL revealed, “This wasn't just about scammers getting rich; the investigation found that money from this massive fraud was being funnelled directly into terrorism-related activities.” The operation screened over 15,000 persons and entities, uncovering around $260 million in illicit funds and seizing around $600,000.

A Red Notice has been issued for one of the alleged masterminds, accused of scamming victims of roughly $5 million through a complicated series of crypto wallets and exchanges. INTERPOL Secretary General Valdecy Urquiza praised the collaboration between the global investigating teams, stating, "By sharing intelligence, expertise and resources, we can more effectively identify and disrupt the financial flows that support terrorist activities."

The operation also outlined the growing threat of cryptocurrency-enabled crimes and the importance of international cooperation in combating terrorism financing. AFRIPOL's Executive Director, Ambassador Jalel Chelba, emphasised the value of synergy among African law enforcement agencies in tackling complicated financial crimes.

Moreover, the Operation Catalyst received strategic support from private-sector partners, including Binance and Moody's, showing the critical role of public-private partnerships in fighting financial crime. Notably, the operation follows INTERPOL's recent ‘Operation Serengeti 2.0’, which arrested 1209 suspected cybercriminals and recovered $97.4 million from online scams.