Key facts
- Nine suspects, including two Greek soldiers, are accused of running a cryptocurrency pyramid scheme.
- The scheme allegedly defrauded about 10,000 investors of approximately $8 million.
- Entry into the scheme started at €800, with VIP investors asked for €5,000.
- Investors were promised their money would double.
- The case began in July with two anonymous complaints filed through the Greek government's digital services portal.
- Investigators estimate the organization signed up 1,842 members and took in around €2 million in Katerini alone.
Nine individuals, including two Greek servicemen, are accused of operating a cryptocurrency pyramid scheme that allegedly defrauded approximately 10,000 investors of $8 million. The suspects were scheduled to appear before an investigating magistrate in northern Greece on Monday.
Police have arrested 17 people in connection with the alleged organization, which prosecutors claim operated as a pyramid scheme and enticed investors into cryptocurrencies via a controlled platform. The figures for alleged proceeds and investor numbers come from police sources.
The scheme's recruitment vehicle was reportedly a local civic group, the Association of Artificial Intelligence Friends. A 44-year-old leader of this association was remanded in custody after his account did not convince the magistrate and prosecutor. Six other individuals from the initial group of seven arrested were released under restrictive conditions, with bail set between €15,000 and €20,000.
Investigators believe one of the military suspects learned the scheme's methods from a contact met while traveling overseas. The scheme's structure involved encouraging investors to contribute from €800, with VIP investors asked for €5,000, both tiers promised a doubling of their investment. In Katerini alone, investigators estimate the organization recruited 1,842 members and collected approximately €2 million.
The investigation began in July following two anonymous complaints filed through the Greek government's digital services portal.