Italy busts mafia “hidden bank” that moved money through crypto exchanges

24 Oct 2026

24 Oct 2026, 02:45 UTC+02:00

Exchanges TradeReviewed News Desk

Italian police say a car rental business on the outskirts of Milan was in fact a bank for organized crime, and crypto exchanges were part of its toolkit. The Guardia di Finanza, Italy’s financial police, arrested 30 people and seized EUR 21 million (about $23.6 million) in cash, bank balances, cryptocurrency, boats, jewelry and luxury watches, Italian news agency ANSA reported.

The network

The operation, ordered by Milan’s anti-mafia prosecutors, targeted suspects linked to the ‘Ndrangheta, the Camorra and crime groups from Foggia. Sixteen people were taken into custody and 14 placed under house arrest, including arrests in Spain and Switzerland. Investigators say the business in Pero was run by two long standing contacts of Calabrian ‘Ndrangheta clans and a member of the Camorra’s Casalesi clan, with Chinese and Albanian accomplices.

How the money moved

Shell companies issued more than EUR 110 million in invoices for services never provided, letting businesses cut their tax bills. The businesses paid by bank transfer and got the money back in cash minus a commission. Prosecutors say about EUR 68 million was moved abroad. According to Bloomberg, funds went to banks in Luxembourg, Lithuania and Germany and were then routed through crypto exchanges into wallets controlled by the network. Drug traffickers who handed over cash received crypto or international transfers in return, and the network also handled money stolen from victims of online crypto investment scams.

A Guardia di Finanza inspector was placed under house arrest on corruption charges, a Milan court employee is accused of leaking information, and a lawyer and a former financial police officer are also implicated. The court order runs to more than 500 pages.

What it means for traders

• Expect stricter checks in the EU: cases like this drive tougher KYC and source of funds questions on European exchanges under MiCA and the EU anti-money laundering rules. Have documents ready for larger deposits.
• Scam money gets laundered here: victims of fake investment platforms often see their funds pass through networks like this one. Only use exchanges you can verify.
• Pick regulated venues: our exchange comparison shows MiCA status, and our testing methodology explains our scoring.

Sources

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

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