Overview
- Nine individuals, including two military personnel alleged to be in leadership positions, were scheduled to appear before an investigating magistrate in northern Greece on Monday.
- Authorities estimate that the scheme garnered approximately $8 million from around 10,000 investors.
- Initial investments began at €800, with so-called VIP investors being solicited for €5,000, with assurances that their investments would double.
According to a report by the Athens daily To Vima, two Greek servicemen are among nine suspects accused of orchestrating a cryptocurrency pyramid scheme that allegedly defrauded around $8 million from nearly 10,000 investors.
The nine suspects were set to provide statements to an investigating magistrate on Monday. Law enforcement has detained 17 individuals in connection with this alleged scheme, which prosecutors claim operated as a pyramid structure, luring investors into cryptocurrencies via a controlled platform. No charges have been substantiated in court, and the figures cited originate from police reports rather than formal legal documents.
As per the report, the recruitment for the scam was facilitated by a local civic organization. A 44-year-old leader of the Association of Artificial Intelligence Friends in Katerini was taken into custody after the magistrate and prosecutor found his explanations unconvincing. Of the first group of seven arrested, six were released under restrictive conditions, with bail amounts set between €15,000 and €20,000, according to public broadcaster ERT.
The two military suspects hail from Pieria and Larissa, with investigators suggesting that the serviceman from Larissa learned the scheme during an overseas trip through a contact.
The investment scheme followed a common format, encouraging contributions starting at €800, while VIPs were invited to invest €5,000, both with the promise of doubling their funds. Investigators estimate that in Katerini alone, the organization recruited 1,842 members, raising around €2 million.
The investigation commenced in July following two anonymous complaints submitted via gov.gr, the digital services portal of the Greek government, to the Katerini Sub-Directorate for Crime Investigation.