TL;DR
- Greek police have arrested 17 people over an alleged $8 million cryptocurrency pyramid scheme targeting around 10,000 investors, with two servicemen accused of leadership roles.
- Investors were reportedly asked for at least €800, while VIP participants were asked for €5,000 and promised their money would double.
- The investigation began after two anonymous complaints, while suspects face questioning and restrictive measures; the allegations have not been established as guilt in court.
Two Greek servicemen are among nine suspects accused of leadership roles in an alleged cryptocurrency pyramid scheme that targeted about 10,000 investors and generated $8 million, according to To Vima. Greek police have arrested 17 people linked to the organization, while prosecutors allege investors were directed into cryptocurrencies through a platform controlled by the group. The case adds another warning around crypto scams. The allegations remain under investigation and have not been established as guilt in court.
Greek Investigation Focuses on Recruitment and Promised Returns
The nine suspects were due to appear before an investigating magistrate on Monday. Among them are servicemen from Pieria and Larissa, with investigators alleging both held leadership roles. Authorities believe the Larissa serviceman learned the method from a contact encountered while traveling abroad. Investigators are examining whether military personnel helped organize and expand the alleged investment network, as authorities continue reconstructing how participants were recruited and funds moved through the platform.
Investors were reportedly encouraged to enter with at least €800, while participants categorized as VIPs were asked for €5,000, with promises that their money would double. In Katerini alone, investigators estimate 1,842 members placed around €2 million into the operation. Promises of unusually high or guaranteed returns are central to the alleged recruitment model, echoing patterns seen in other crypto Ponzi investigations where new participants are drawn by exceptional profit claims.
The case reportedly used the Association of Artificial Intelligence Friends in Katerini as a recruitment vehicle. A 44-year-old leader of the association was remanded in custody after appearing before the investigating magistrate and prosecutor, while six others from the first group of seven arrested were released under restrictive conditions. Bail was set between €15,000 and €20,000. The differing custody decisions reflect the ongoing judicial process rather than final determinations of responsibility, a distinction that remains important across crypto investment fraud cases.
The investigation began in July after two anonymous complaints were submitted through gov.gr to the Katerini Sub-Directorate for Crime Investigation. Authorities then began tracing the alleged organization, eventually making 17 arrests. The case follows wider enforcement attention around fraudulent crypto investment platforms, where controlled websites can create the appearance of legitimate investment activity. For the Greek case, the central questions now concern individual roles, the flow of investor funds and whether prosecutors can substantiate the pyramid-scheme allegations before the courts.
