Italy Busts Mafia 'Secret Bank' That Laundered Money Through Crypto, Seizes $24M

The operation, carried out by the Guardia di Finanza on orders from Milan's anti-mafia prosecutors, targeted suspects linked to Italy's most powerful criminal organizations. Sixteen were taken into custody and 14 placed under house arrest, including two people arrested in Spain and one in Switzerland.

According to investigators, the business in Pero, on the outskirts of Milan, was run by three Italians with connections to 'Ndrangheta and Camorra clans. Chinese and Albanian accomplices helped operate the network, prosecutors said.

Money laundering scheme

Shell companies issued more than €110 million in invoices for services never provided, allowing businesses to reduce their tax liabilities. Those firms paid by bank transfer and received the money back in cash, minus a commission.

Funds were sent to banks in Luxembourg, Lithuania and Germany, then routed through crypto exchanges into wallets controlled by the network. Drug traffickers received crypto or international bank transfers in return for cash, while the network also handled money stolen from victims of online crypto investment scams.

Corruption within authorities

Among those arrested is a Guardia di Finanza inspector placed under house arrest on corruption charges. Investigators also accused a Milan court employee of leaking information about ongoing investigations.

The investigation, supported by the Guardia di Finanza's technology fraud unit, is detailed in a court order running to more than 500 pages. Italian authorities have warned for years that organized crime is increasingly adopting digital assets for illicit activities.