The Police in Paraguay have arrested a criminal gang comprising 10 members between the ages of 18 and 20 years old, suspected of having stolen up to $1.2 million from hundreds of bank accounts and e-wallets.
In its latest report, the South American nation’s police said it had already confiscated $400,000 in crypto, which the criminals used to launder stolen funds. According to the police, the gang operated through cash and card mules, who provided personal information and bank account details.
Using Crypto to Clean Out Stolen Funds
Mainstream media outlets in Paraguay reported that the gang, after emptying their victims’ accounts, converted stolen funds to cryptocurrency, highlighting how criminals worldwide are adopting this method to escape being caught.
The worrying trend of using crypto channels to move stolen or illicit funds is a significant concern for the digital asset ecosystem and for law enforcement. In January, a Venezuelan national faced charges from the US Department of Justice for using Tether’s USDT to launder about $1 billion for crime syndicates.
A Teen-Led Gang With an Expensive Lifestyle
The Paraguayan police arrested the 10 suspects in the province of Itapua. However, law enforcement agents reported that those in custody represent only a fraction of the money mule network of over 400 members, with the alleged masterminds of the crime being graduates of the same high school, including the ringleader, who is an 18-year-old male named Alex.
These criminals hacked and drained the bank accounts and e-wallets of several unsuspecting victims, according to law enforcement agents. They rented the bank accounts of mules, who they settled monthly for the illegal service, in addition to commissions paid per transaction.
According to reports, the gang started operating in the first week of this year, but their activities ballooned in March. They resorted to luxurious lifestyles, including buying expensive cars and renting costly apartments. In the meantime, in addition to holding the suspects in custody, the police seized various items from them, including motor vehicles, computer equipment, and mobile phones.
Continuing the Clampdown on Crypto Crime
Courts in Paraguay have issued multiple arrest warrants, and the police are prepared to launch another series of raids. However, some suspected mules are voluntarily reporting themselves to law enforcement amid fears of being traced.
The gang’s operational mode involved using over-the-counter trading methods to convert stolen funds into crypto. Things backfired after a female crypto investor received an exaggerated offer to buy off her digital asset. She reported the situation to a local police station, triggering the raid on the suspects.
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