Cyprus Supreme Court Advances $700 Million Crypto Fraud Investigation

• Cyprus Supreme Court decision paves the way for safe deposit box search in $700 million scam.
• Ruling underscores European collaboration in crypto fraud crackdown.

In a February 16, 2026 decision, the Cyprus Supreme Court advanced a $700 million cryptocurrency fraud investigation, clearing authorities to open two safe deposit boxes linked to an Israeli couple implicated in a major cross-border scam. This ruling is a significant development in an international probe led by French authorities into fraudulent cryptocurrency platforms operating across Europe and beyond.

On October 22, 2025, a Limassol court issued search warrants for the safe deposit boxes as part of an inquiry into an operation that allegedly deceived victims through fake crypto investment platforms dating back to 2020. The couple challenged the warrants, claiming insufficient evidence to connect the boxes to criminal activity. However, the Supreme Court rejected their appeal on February 10, 2026, ruling that reasonable suspicion warranted the search.

Investigators suspect the deposit boxes may contain electronic devices such as smartphones or tablets that could reveal vital evidence about the scam. Officials allege that the fraudulent platforms enticed victims by presenting fabricated trading profits, convincing them to invest funds that were then laundered through a network of shell companies in jurisdictions including Cyprus, Singapore, the British Virgin Islands, and Hong Kong.

The Israeli man is believed to have played a key role in the scheme. Court documents indicate that he received $20,000 in cryptocurrency linked to the fraudulent platforms in 2021 and later processed $3 million through his personal account. Additionally, his family is reportedly tied to a trust used to acquire property that may be connected to the case.

This investigation forms part of a broader European initiative to dismantle crypto fraud networks. Europol disclosed in December 2025 that coordinated raids targeting suspected money launderers linked to the scam were conducted in Cyprus, Germany, and Spain on October 27, 2025. The operation resulted in nine arrests and the seizure of digital assets, cash, bank funds, and other valuables worth millions of euros. Law enforcement agencies from France, Belgium, Germany, Spain, Malta, and Cyprus have collaborated on the operation with support from Europol and Eurojust.

The Cyprus Supreme Court ruling represents a critical milestone in the ongoing investigation and reinforces the importance of international cooperation in addressing the complex challenges posed by cryptocurrency-related crimes.