Italy arrests 30 over alleged mafia-linked underground bank that laundered €68 million through crypto exchanges and shell firms

Italian financial police have arrested 30 people in the alleged dismantling of an underground bank linked to the ‘Ndrangheta, which investigators say used shell companies, false invoices and crypto exchanges to move about €68 million abroad. Authorities have ordered the seizure of more than €21 million in assets, including cryptocurrency, boats and luxury watches.

How the alleged underground bank moved illicit funds

Investigators traced the alleged operation to Pero, a town near Milan, where a car-rental business reportedly served as the cover for a clandestine financial service. According to details published by Italian media citing the investigation, the network was allegedly led by three Italian nationals considered close to organised crime groups. Two were described as established contacts of ‘Ndrangheta clans originating from the Crotone area, while the third was linked to the Casalesi clan.

The network allegedly relied on Chinese and Albanian associates to support its cross-border activities. Investigators believe it provided services resembling those of a conventional bank, but outside regulated financial channels.

The Guardia di Finanza described the alleged criminal association as “dedicated to international money laundering, tax fraud, bankruptcy offences, drug trafficking and weapons-related offences,” according to reporting by Rai News.

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The suspected crypto money laundering arrangement reportedly involved several connected stages.

First, the network collected cash allegedly generated by tax offences and drug trafficking. Investigators said one individual of Calabrian origin had delivered more than €5 million in cash on multiple occasions, sometimes using couriers. In exchange, those supplying the funds could reportedly receive cryptocurrency of equivalent value or have money transferred to overseas bank accounts.

Second, the network allegedly used shell companies to issue invoices for transactions that never took place. These companies, often registered under nominees, reportedly provided false invoices to businesses in sectors including construction, logistics and services. The arrangements allegedly allowed participating businesses to reduce their declared taxable income.

Third, after the false invoices were paid by bank transfer, the network allegedly returned equivalent amounts in cash to the businesses involved, deducting commissions of between 2% and 5% for its services.

Finally, investigators said money accumulated in the shell companies’ bank accounts was transferred to foreign accounts before being routed through cryptocurrency exchanges into wallets allegedly controlled by the criminal organisation. The reported destinations included Luxembourg, Lithuania and Germany, while other transfers were linked to accounts in Asia and the Americas.

The investigation also reportedly identified payments from victims of online phishing scams who had believed they were investing in cryptocurrencies. Their transfers allegedly passed through bank accounts belonging to shell companies, adding another suspected source of illicit funds to the network.

€21 million in assets seized as investigation expands

The enforcement operation involved financial police units from Milan and Monza Brianza, supported by specialist departments and coordinated with Italy’s national anti-mafia authorities. Searches extended across numerous Italian provinces, while international cooperation enabled arrests and investigative measures in Spain and Switzerland. More than 350 officers participated in the operation.

Authorities issued precautionary measures against 30 suspects. Sixteen were ordered into pre-trial detention, while 14 were placed under house arrest. The measures are part of an ongoing investigation and do not constitute convictions.

The €21 million seizure order covers a range of assets, including cash, bank deposits, cryptocurrencies, vehicles, boats, jewellery, luxury watches and cash-counting machines.

The case has also raised concerns about alleged misconduct involving people with access to sensitive information. Among those under investigation is a driver employed by Milan’s preliminary investigations judge’s office, who reportedly worked with assets under seizure. He is accused in this case of unauthorised access to computer systems and was placed under house arrest. A Milan lawyer is also reportedly implicated.

Investigators further identified a former member of the Guardia di Finanza, no longer in service, who is accused of receiving money from a Chinese suspect in exchange for confidential information and promises of assistance concerning tax collection notices. These allegations remain subject to the legal process.

According to the investigative account, the alleged criminal association also sought to support imprisoned ‘Ndrangheta members through what investigators described as a “solidarity fund.” The inquiry additionally examined suspected assistance to people associated with the Foggia-based criminal organisation commonly known as the “Fourth Mafia,” including the alleged provision of weapons and vehicles.

The scale of the alleged false iinvoicing more than €110 mmillion also indicates that the investigation extends well beyond cryptocurrency transactions. The €68 million figure refers to identified international transfers, while the €21 million represents assets targeted by seizure measures. These amounts describe different aspects of the case and should not be treated as interchangeable estimates of criminal proceeds.

The alleged crypto money laundering operation remains under investigation, and the suspects are entitled to the presumption of innocence unless and until their guilt is established by a final judicial decision.

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