Europol has issued a new warning about the accelerating scale and sophistication of crypto-related crime across Europe, noting that the surge in illicit activity is placing unprecedented pressure on law-enforcement agencies.
According to the European Union’s policing authority, investigations involving digital assets now require far greater technical expertise, cross-border coordination and long-term resource commitments than in previous years.
Crypto used for terrorism financing and sanctions evasion
Burkhard Mühl, head of Europol’s European Financial and Economic Crime Centre, said that criminal groups are increasingly turning to cryptocurrencies to facilitate terrorism financing, drug trafficking and sanctions evasion.
He described these cases as a “significant burden” for EU law-enforcement bodies, which often struggle with the speed and complexity of on-chain transactions.
Losses exceed $2.1B in 2025
Europol’s data shows that hacks and protocol exploits have already resulted in more than $2.1 billion in losses this year.
The largest incident was the February attack on Bybit, where attackers drained approximately $1.5 billion. Authorities also highlighted breaches involving BtcTurk and Coinbase.
Romance scams and “pig butchering” remain widespread
The agency reiterated concerns about large-scale social-engineering operations.
In June, Europol dismantled a massive scam network in Spain, which had stolen over $540 million from more than 5,000 victims.
The network used “pig butchering” — a method where fraudsters build emotional connections with victims before manipulating them into fake investment schemes.
Analysts estimate that such scams generated over $4 billion in illicit proceeds during 2024.
Physical attacks on crypto holders on the rise
A troubling trend in 2025 has been the rapid growth of physical robberies targeting crypto owners. Often referred to as “wrench attacks,” these incidents involve criminals forcing victims — sometimes violently — to hand over access to their digital assets.
Chainalysis previously warned that physical assaults tied to crypto theft rose 54% year-over-year.
Europol reports that such cases were documented in France, Sweden, Norway, and outside Europe — including Brazil, Canada and Thailand. Several incidents involved kidnappings and torture aimed at coercing victims.
Europol urges deeper international cooperation
Given the escalating threats, Europol is calling for expanded global collaboration, better investigator training and more advanced tools to track funds across multiple chains.
The agency stressed that crypto-enabled crime is evolving faster than traditional policing frameworks — and addressing it requires “a coordinated international response.”
Earlier this year, the U.S. Department of Justice and Europol jointly seized $200 million in cash and digital assets during Operation RapTor.
