Cyprus Court Forces Opening of Israeli Couple’s Safe Deposit Boxes in €700 Million Crypto Scam Probe

Cyprus’ top court has ordered an Israeli couple to surrender the keys to their safe deposit boxes, a move that follows a massive crackdown on a €700 million cryptocurrency laundering scheme. The case came after Europol revealed that authorities across Europe—France, Germany, Cyprus, Spain, Malta, Israel, Bulgaria and Belgium—had dismantled the network that moved stolen crypto into shell companies worldwide.

Earlier this month, a Limassol judge issued a warrant to search the couple’s boxes. They resisted, claiming nothing linked to the laundering ring was stored there. In an attempt to overturn the decision, they filed a writ of certiorari, asking a higher court to review the case. Judge Elena Efraim rejected their appeal after uncovering that one spouse had received roughly $20,000 in crypto directly tied to the scam in 2021.

The couple’s family operated a trust that bought property and received a $3 million deposit, all of which the court said pointed to their involvement. The authorities also plan to seize any high‑tech devices—smartphones, tablets and similar equipment—that might hold evidence.

The laundering operation fed on fake crypto investment sites that promised huge returns. Scammers would tell victims they had already made big profits, then pressure them to send more money. The scheme moved funds through salaries, property purchases and other entities under the guise of legitimate business.

In November, France arrested nine people in Cyprus, Spain and Germany as part of the same investigation. While reports vary on whether the total illicit proceeds were €700 million or $700 million, the scale of the fraud is clear.

The reach of these scams extends beyond Europe into Southeast Asia, where local authorities are also cracking down on crypto fraud rings that target vulnerable populations. China recently executed leaders of several family‑run crime groups involved in crypto scams, and Cambodia is actively shutting down similar enterprises.

However, some scam rings have been known to collude with law enforcement, either by warning authorities of upcoming raids or staging fake arrests to evade prosecution.

The Cyprus ruling underscores the international effort to trace and recover stolen digital assets, while highlighting the challenges of policing cross‑border financial crimes in the crypto world.